Formulae List Simple Interest (S.I) = P*r*t/100 Compound Interest (C.I) = [P*(1+r/100)^t P] CAGR = [(Final Value/Initial Value)^1/n]- 1 FV = PV*(1+r/100)^t NPV = PV of all cash inflows-PV of all cash outflows e.g: NPV = -PV (C1) + PV (C2) + PV (C3). Inflation = Nominal Rate of Interest - Real Rate of Interest NAV = (Market value of the fund investments + Income receivable - Expenses payable)/ Total no. of Outstanding units Market capitalization (cap for short) = Market Price * Number of Outstanding Shares of the Company
Bond Price = 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 t = Time period in years Trading Position = Total Purchases- Total Sales (could be in value or in quantity) Spread = Average Lending Rate Average Deposit Rate NII = Interest Earned on Loans - Interest Paid on Deposits Risk Weighed Assets = Asset Value*Risk Weight Assigned CRAR =Capital/ Risk Weighted Assets (Term used for NBFCs) Finance Charges = Interest Paid on Purchase Price for the Lease Period (Hire Purchase) Lease Rental = [(Purchase Price Residual Value) + Finance Charges] /Lease Period Net Owned Funds = Owners Equity Losses (Term used for NBFCs)