BA 2802 – Principles of Finance

Formula Sheet for the Second Interim Exam

n
1. PV 
FV n
2. FV n  PV  (1  r )
(1  r )
n

 1 
1
 (1  r ) 
 (1  r )  1 
n n

3. PVA  PMT   4. FVA  PMT

n
 
 r   r 
 

mn
 APR 
5. Effective n-period Rate = 1   1
 m 

r×n
6. Effective n-period Rate = e –1

Annual Percentage Rate = m[ 1  Effective 

1/(m  n)
7. Rate  1]

D t1 D t1 Dt(1  g )

8. Pt  9. Pt  
r r  g r  g

10. Operating Cash Flow = Net Income + Depreciation

11. Book Value = Initial Cost – Accumulated Depreciation

12. After tax proceeds

= Resale Value – Tax Rate×(Resale Value – Book Value)
from selling an asset