Simple Interest

I =PRT
I
P=
RT
I
R=
PT
I
T=
PR
S=P+ I
S=P+ PRT
S=P (1+ RT )
S
P=
( 1+ RT )
Compound Interest

FV =P V (1+i)n
FV
PV = n
(1+i)
j
i=
m
n=t × m
1
FV
i=( ) −1
PV
n

FV
ln (
PV )
n=
ln ( 1+i )

Effective rate of interest

f =(1+ i)m−1
f =rate of interest compounded yearly , iis the given periodic interest rate , and m is the number of
compounding periods per year

Equivalent periodic rate

 m1
m2
i 2=(1+i 1 ) −1

I1 and m1 are the given rates, and m2 is the number of compounding periods for the rate.

Annuity (Simple Ordinary)

Number of compounding periods per is equal to number of payments per year. Payments are
made at the end of the period

(1+i)n−1
FV =PMT [ i ]
iFV
PMT =
[ (1+i)n−1 ]
iFV

n=
ln
[( ) ]
PMT
+1

ln ⁡(1+i)
i=¿ )

1−(1+i)−n
PV =PMT [ i ]
PMT =¿
 iPV

n=
[ ( )]
ln 1−
PMT
−ln ⁡(1+ i)
i=( use trial∧error∨calculator )
Simple annuity due

(1+i )n−1
FV (due)=PMT [ i
(1+i) ]
FV ( due)
PMT =
(1+i)n−1
[ i
(1+i)]
iFV (due)

n=
[
ln 1+
PMT (1+i) ]
ln ⁡(1+i)
i=(use trial∧error∨calulator)

1−(1+i)−n
PV ( due )=PMT
i [ (1+ i) ]
PV (due)
PMT = −n
1−( 1+ i )
[ i ] (1+i)

iPV ( due)

n=
[
−ln 1−
PMT (1+i) ]
ln ⁡(1+i)
i=(use trial∧error∨calculator)