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STX1120 TEST Formulae Dr Androulla Michaeloudis Page 1

These formulae may be used during the STX1120 Test.





Linear Function


where a = intercept and b= slope (or gradient)




Quadratic Function


where a = coefficient of
2
x , b= coefficient of x, and c= constant


( ) 0 a =



Future Value of Investment



(assuming a compound interest)






Discount Factor (or Present Value Factor)










Present Value = Future Value (Cash Flow) Discount Factor






bx a y + =

c bx ax y + + =
2

( ) 1
n
n
A A i = +

( )
( )
1
1
1
n
n
i
i

= +
+

( )
n
n
i A PV

+ = 1

FORMULAE

STX1120 TEST Formulae Dr Androulla Michaeloudis Page 2


Net Present Value (NPV)









100
year base the in Price
year current the in Price
Index Price =



100
0
Index Price =
P
P
n




100
year base the in prices the of Sum
year current the in prices the of Sum
Index Price Aggregate Simple =




100
0
Index Price Aggregate Simple =

P
P
n






Sum of the price relatives
Simple Mean Price Index 100
Number of items
=






n
0
P
P
Simple Mean Price Index 100
n
| |
|
\ .
=



NPV = Sum of Discounted Cash Flows Cost

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