Finance & Banking Fundamentals ‐ India

Formulae List Simple Interest (S.I) Compound Interest (C.I) CAGR FV PV NPV Inflation NAV Market capitalization (cap for short) Bond Price = P*r*t/100 = [P*(1+r/100)^t – P] = [(Final Value/Initial Value)^1/n]- 1 = PV*(1+r/100)^t = FV/(1+r/100)^t = PV of all cash inflows-PV of all cash outflows e.g: NPV = -PV (C1) + PV (C2) + PV (C3)…. = Nominal Rate of Interest - Real Rate of Interest = (Market value of the fund investments + Income receivable - Expenses payable)/ Total no. of Outstanding units = Market Price * Number of Outstanding Shares of the Company = C / (1 + r /m )^m*t C = Coupon or Cash flows r = Yield Rate in the Market m = Number of times compounding happens in a year Time period in years = Total Purchases- Total Sales (could be in value or in quantity) = Average Lending Rate – Average Deposit Rate = Interest Earned on Loans - Interest Paid on Deposits = Asset Value*Risk Weight Assigned =Capital/ Risk Weighted Assets (Term used for NBFCs) = Interest Paid on Purchase Price for the Lease Period (Hire Purchase) = [(Purchase Price ‐ Residual Value) + Finance Charges] /Lease Period = Owners’ Equity – Losses (Term used for NBFCs) = Minimum Average Lending Rate – other expenses - profit

t =

Trading Position Spread NII Risk Weighed Assets CRAR Finance Charges Lease Rental Net Owned Funds WACC

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