SIMPLE INTEREST

COMPOUND INTEREST

Break-even analysis: Total expenses = Total income

 ANNUITY

Deferred Annuity (Future Worth) Deferred Annuity (Present Worth)

𝐴[(1 + 𝑟)𝑛 − 1] 𝐴[(1 + 𝑟)𝑛 − 1]

𝐹= 𝑃=
𝑟 (1 + 𝑟)𝑛 ∗ 𝑟

A = initial/amount paid/annuity A = initial/amount paid/annuity

r = interest rate r = interest rate
F = future worth P = Present worth
n = number of years n = number of years

Annuity Compounded Continuously (Future Worth) Annuity Compounded Continuously (Present Worth)

𝐴[(𝑒)𝑟𝑛 − 1] 𝑃[𝑒 𝑟𝑛 − 1]
𝐹= 𝐴=
𝑒𝑟 − 1 1 − 𝑒 𝑟𝑛

F = future worth F = future worth

A = annuity A = annuity
r = nominal rate of interest r = nominal rate of interest
n = number of years n = number of years