SIMPLE INTEREST

I=PRT
A=P+I

CASE 1 CASE 2
P 100000 R I/PT 0.333333
R 5% p.a.
T 3 Years
CASE 3
I 15000 T I/PR 3
A 115000
COMPOUND INTEREST
S=P(1+R)^T OR S=P(1+i)^n

P 100000
R 12% p.a.
T 3 years

S 140492.8
LOG AND ANTILOG
Log(1.20)
Log 1.2 0.079181

AL(.079181)
AL 0.079181 1.199999
PRESENT VALUE
PV=FV(1/(1+i)^n)) OR PV=FV((1+i)^(-n))

CASE 1
FV 1000000
t 5n 20
r 8% i 0.02
m 4

PV ₹ 672,971.33

CASE 2
PV 672971.33
FV 1000000
r 8%
m 4

t 5.000000058
P 500000
R 11%
T 10 years
S=Pe^(rt)
CASE 1

S 1502083
CASE 2
P 1
S 2
R 6%
T 11.55245

CASE 3
P 4000
S 7000
T 8 years
R 0.013194
 CONTINUOUS COMPOUNDING-PRESENT VALUE

P=S(e^(-rt))
CASE2 CASE 1 IN PREVIOUS SHEET:SIMPLE CONTINUOUS COMPOUNDING
S 500000
R 5%
T 5 years

P 389400.4
 NOMINAL AND EFFECTIVE INTEREST RATE
Re=[e^r]-1 NOMINAL TO EFFECTIVE
R=log(1+re)/logRe EFFECTIVE TO NOMINAL

CASE 1 CONTINUOUS COMPOUNDING(NOMINAL TO EFFECTIVE)

R 4%
Re 4.0810774192388200%

CASE 2
Re 4.08%
R 0.0399896482161584
ORDINARY ANNUITY
1)FUTURE VALUE
FV=R[((1+i)^n-1)i]

CASE 1 CASE 2
R 1000 R 1000
i 8% r 8% i
n 12 m 4
n 12
FV ₹ 18,977.13 FV ₹ 13,412.09

CASE 5 CASE 6
FV 2000000 R
N 5n 20 r
r 6% i 0.015 m
m 4 N1
R ₹ 86,491.47 N2
FV(8TH YEAR)
FV(10TH YEAR)
2)PRESENT VALUE
P=R[(1-(1+i)^(-n))/i]

CASE 1 CASE 2
R 1000 CASH DOWN PAYMENT
n 6 R
i 10% n
PV ₹ 4,355.26 i
PV
CASH PRICE
CASE 3
WITHOUT DOWN PAYMENT DOWN PAYMENT CASE
PV 700000 CASH DOWN PAYMENT
n 5 BALANCE
i 5%
R ₹ 161,682.36 R
total amount paid in form of installments ₹ 808,411.79 TOTAL AMT PAID
total int paid ₹ 108,411.79 TOTAL INT PAID
 CASE 3 CASE 4

0.02

2000
10% i 0.05
2
8 n1 16
2 n2 4
₹ 47,314.98
₹ 57,511.66

50000
8000
20
6%
₹ 91,759.37
₹ 141,759.37

150000
550000

₹ 127,036.14
₹ 635,180.69
₹ 85,180.69
ANNUITY DUE
1) FUTURE VALUE
FV=R(1+i)[((1+i)^n-1)/i]
CASE 1 CASE 2
R 2000 r 8% i
m 12 m 4
N 3n 36 N 3n
r 15% i 0.0125 FV 70000
FV ₹ 91,358.90 R ₹ 5,116.84

2) PRESENT VALUE
P=R(1+i)[(1-(1+i)^n))/i]
CASE 1 CASE 2
R 1000 PV 80000
N 5n 20 i 7%
r 8% i 0.02 n 10
m 4 R ₹ 10,645.05
PV ₹ 16,678.46
0.02

12
DEFFERED ANNUITY
1) FUTURE VALUE
FV=R[((1+i)^n-1/i]
CASE 1 CASE 2
R 6000 R 200
m 5 n 12
n 5 r 6% i 0.03
i 5% m 2
FV ₹ 33,153.79 FV ₹ 2,838.41

2) PRESENT VALUE
P=R(1+i)^(-m)[(1-(1+i)^(-n))/i]
CASE 1
n 20
m 14
m+n 34
R 500
r 10% i 0.05
COMPOUNDING PERIOD IN A YEAR 2
PV ₹ 3,147.13
CASE 3
R 100
r 8% i 0.04
COMPOUNDING PERIOD IN A YEAR 2
m 11
n 31
PRESENTING YEAR(25TH) 4 8
FV ₹ 5,932.83
FV(25TH) ₹ 8,119.49
PERPETUITY
1) PRESENT VALUE (AT THE END)
P=R/i
CASE 1 CASE 2(BEGINNING OF THE PERIOD)
R 780 P=R+(R/i)
i 6%
P 13000 P 13780
CASE 3
R=Pi
P 36000
r 6% i 0.03
m 2
R 1080
Sinking Fund
S=R[(1+i)^n-1)/i]

Case 1
Old Machine Cost 70000
Life (Years) 5n 20
Salvage Value(5th Year end) 10000
Sinking Fund 60000
r 8% i 0.02
m 4

R ₹ 2,469.40

Case 2
Machine Purchase Price 50000
Life (Years) 8
Depreciation (DV) 10%
i 5%
Book Value (At the end of 8th Year) 21523.361
Total Depreciation (upto 8 years) 28476.64
Sinking Fund Amount will be 28476.64

R ₹ 2,982.13
COMPOUNDING TABLE S = (1+I)^n

1% 2% 3% 4% 5% 6% 7% 8% 9%
1 1.01 1.02 1.03 1.04 1.05 1.06 1.07 1.08 1.09
2 1.0201 1.0404 1.0609 1.0816 1.1025 1.1236 1.1449 1.1664 1.1881
3 1.030301 1.061208 1.092727 1.124864 1.157625 1.191016 1.225043 1.259712 1.295029
4 1.040604 1.082432 1.125509 1.169859 1.215506 1.262477 1.310796 1.360489 1.411582
5 1.05101 1.104081 1.159274 1.216653 1.276282 1.338226 1.402552 1.469328 1.538624
6 1.06152 1.126162 1.194052 1.265319 1.340096 1.418519 1.50073 1.586874 1.6771
7 1.072135 1.148686 1.229874 1.315932 1.4071 1.50363 1.605781 1.713824 1.828039
8 1.082857 1.171659 1.26677 1.368569 1.477455 1.593848 1.718186 1.85093 1.992563
9 1.093685 1.195093 1.304773 1.423312 1.551328 1.689479 1.838459 1.999005 2.171893
10 1.104622 1.218994 1.343916 1.480244 1.628895 1.790848 1.967151 2.158925 2.367364
11 1.115668 1.243374 1.384234 1.539454 1.710339 1.898299 2.104852 2.331639 2.580426
12 1.126825 1.268242 1.425761 1.601032 1.795856 2.012196 2.252192 2.51817 2.812665
13 1.138093 1.293607 1.468534 1.665074 1.885649 2.132928 2.409845 2.719624 3.065805
14 1.149474 1.319479 1.51259 1.731676 1.979932 2.260904 2.578534 2.937194 3.341727
15 1.160969 1.345868 1.557967 1.800944 2.078928 2.396558 2.759032 3.172169 3.642482
16 1.172579 1.372786 1.604706 1.872981 2.182875 2.540352 2.952164 3.425943 3.970306
17 1.184304 1.400241 1.652848 1.9479 2.292018 2.692773 3.158815 3.700018 4.327633
18 1.196147 1.428246 1.702433 2.025817 2.406619 2.854339 3.379932 3.996019 4.71712
19 1.208109 1.456811 1.753506 2.106849 2.52695 3.0256 3.616528 4.315701 5.141661
20 1.22019 1.485947 1.806111 2.191123 2.653298 3.207135 3.869684 4.660957 5.604411
21 1.232392 1.515666 1.860295 2.278768 2.785963 3.399564 4.140562 5.033834 6.108808
22 1.244716 1.54598 1.916103 2.369919 2.925261 3.603537 4.430402 5.43654 6.6586
23 1.257163 1.576899 1.973587 2.464716 3.071524 3.81975 4.74053 5.871464 7.257874
24 1.269735 1.608437 2.032794 2.563304 3.2251 4.048935 5.072367 6.341181 7.911083
25 1.282432 1.640606 2.093778 2.665836 3.386355 4.291871 5.427433 6.848475 8.623081
26 1.295256 1.673418 2.156591 2.77247 3.555673 4.549383 5.807353 7.396353 9.399158
27 1.308209 1.706886 2.221289 2.883369 3.733456 4.822346 6.213868 7.988061 10.24508
28 1.321291 1.741024 2.287928 2.998703 3.920129 5.111687 6.648838 8.627106 11.16714
29 1.334504 1.775845 2.356566 3.118651 4.116136 5.418388 7.114257 9.317275 12.17218
30 1.347849 1.811362 2.427262 3.243398 4.321942 5.743491 7.612255 10.06266 13.26768
31 1.361327 1.847589 2.50008 3.373133 4.538039 6.088101 8.145113 10.86767 14.46177
32 1.374941 1.884541 2.575083 3.508059 4.764941 6.453387 8.715271 11.73708 15.76333
33 1.38869 1.922231 2.652335 3.648381 5.003189 6.84059 9.32534 12.67605 17.18203
34 1.402577 1.960676 2.731905 3.794316 5.253348 7.251025 9.978114 13.69013 18.72841
35 1.416603 1.99989 2.813862 3.946089 5.516015 7.686087 10.67658 14.78534 20.41397
36 1.430769 2.039887 2.898278 4.103933 5.791816 8.147252 11.42394 15.96817 22.25123
37 1.445076 2.080685 2.985227 4.26809 6.081407 8.636087 12.22362 17.24563 24.25384
38 1.459527 2.122299 3.074783 4.438813 6.385477 9.154252 13.07927 18.62528 26.43668
39 1.474123 2.164745 3.167027 4.616366 6.704751 9.703507 13.99482 20.1153 28.81598
40 1.488864 2.20804 3.262038 4.801021 7.039989 10.28572 14.97446 21.72452 31.40942
41 1.503752 2.2522 3.359899 4.993061 7.391988 10.90286 16.02267 23.46248 34.23627
42 1.51879 2.297244 3.460696 5.192784 7.761588 11.55703 17.14426 25.33948 37.31753
43 1.533978 2.343189 3.564517 5.400495 8.149667 12.25045 18.34435 27.36664 40.67611
44 1.549318 2.390053 3.671452 5.616515 8.55715 12.98548 19.62846 29.55597 44.33696
45 1.564811 2.437854 3.781596 5.841176 8.985008 13.76461 21.00245 31.92045 48.32729
46 1.580459 2.486611 3.895044 6.074823 9.434258 14.59049 22.47262 34.47409 52.67674
47 1.596263 2.536344 4.011895 6.317816 9.905971 15.46592 24.04571 37.23201 57.41765
48 1.612226 2.58707 4.132252 6.570528 10.40127 16.39387 25.72891 40.21057 62.58524
49 1.628348 2.638812 4.256219 6.833349 10.92133 17.3775 27.52993 43.42742 68.21791
50 1.644632 2.691588 4.383906 7.106683 11.4674 18.42015 29.45703 46.90161 74.35752
51 1.661078 2.74542 4.515423 7.390951 12.04077 19.52536 31.51902 50.65374 81.0497
52 1.677689 2.800328 4.650886 7.686589 12.64281 20.69689 33.72535 54.70604 88.34417
53 1.694466 2.856335 4.790412 7.994052 13.27495 21.9387 36.08612 59.08252 96.29514
54 1.71141 2.913461 4.934125 8.313814 13.9387 23.25502 38.61215 63.80913 104.9617
55 1.728525 2.971731 5.082149 8.646367 14.63563 24.65032 41.315 68.91386 114.4083
56 1.74581 3.031165 5.234613 8.992222 15.36741 26.12934 44.20705 74.42696 124.705
57 1.763268 3.091789 5.391651 9.35191 16.13578 27.6971 47.30155 80.38112 135.9285
58 1.780901 3.153624 5.553401 9.725987 16.94257 29.35893 50.61265 86.81161 148.162
59 1.79871 3.216697 5.720003 10.11503 17.7897 31.12046 54.15554 93.75654 161.4966
60 1.816697 3.281031 5.891603 10.51963 18.67919 32.98769 57.94643 101.2571 176.0313
61 1.834864 3.346651 6.068351 10.94041 19.61315 34.96695 62.00268 109.3576 191.8741
62 1.853212 3.413584 6.250402 11.37803 20.5938 37.06497 66.34286 118.1062 209.1428
63 1.871744 3.481856 6.437914 11.83315 21.62349 39.28887 70.98686 127.5547 227.9656
64 1.890462 3.551493 6.631051 12.30648 22.70467 41.6462 75.95595 137.7591 248.4825
65 1.909366 3.622523 6.829983 12.79874 23.8399 44.14497 81.27286 148.7798 270.846
66 1.92846 3.694974 7.034882 13.31068 25.0319 46.79367 86.96196 160.6822 295.2221
67 1.947745 3.768873 7.245929 13.84311 26.28349 49.60129 93.0493 173.5368 321.7921
68 1.967222 3.844251 7.463307 14.39684 27.59766 52.57737 99.56275 187.4198 350.7534
69 1.986894 3.921136 7.687206 14.97271 28.97755 55.73201 106.5321 202.4133 382.3212
70 2.006763 3.999558 7.917822 15.57162 30.42643 59.07593 113.9894 218.6064 416.7301
71 2.026831 4.079549 8.155357 16.19448 31.94775 62.62049 121.9686 236.0949 454.2358
72 2.047099 4.16114 8.400017 16.84226 33.54513 66.37772 130.5065 254.9825 495.117
73 2.06757 4.244363 8.652018 17.51595 35.22239 70.36038 139.6419 275.3811 539.6775
74 2.088246 4.32925 8.911578 18.21659 36.98351 74.582 149.4168 297.4116 588.2485
75 2.109128 4.415835 9.178926 18.94525 38.83269 79.05692 159.876 321.2045 641.1909
76 2.13022 4.504152 9.454293 19.70306 40.77432 83.80034 171.0673 346.9009 698.8981
77 2.151522 4.594235 9.737922 20.49119 42.81304 88.82836 183.0421 374.653 761.7989
78 2.173037 4.68612 10.03006 21.31083 44.95369 94.15806 195.855 404.6252 830.3608
79 2.194768 4.779842 10.33096 22.16327 47.20137 99.80754 209.5648 436.9952 905.0933
80 2.216715 4.875439 10.64089 23.0498 49.56144 105.796 224.2344 471.9548 986.5517
81 2.238882 4.972948 10.96012 23.97179 52.03951 112.1438 239.9308 509.7112 1075.341
82 2.261271 5.072407 11.28892 24.93066 54.64149 118.8724 256.726 550.4881 1172.122
83 2.283884 5.173855 11.62759 25.92789 57.37356 126.0047 274.6968 594.5272 1277.613
84 2.306723 5.277332 11.97642 26.965 60.24224 133.565 293.9255 642.0893 1392.598
85 2.32979 5.382879 12.33571 28.0436 63.25435 141.5789 314.5003 693.4565 1517.932
86 2.353088 5.490536 12.70578 29.16535 66.41707 150.0736 336.5154 748.933 1654.546
87 2.376619 5.600347 13.08695 30.33196 69.73792 159.0781 360.0714 808.8476 1803.455
88 2.400385 5.712354 13.47956 31.54524 73.22482 168.6227 385.2764 873.5555 1965.766
89 2.424389 5.826601 13.88395 32.80705 76.88606 178.7401 412.2458 943.4399 2142.685
90 2.448633 5.943133 14.30047 34.11933 80.73037 189.4645 441.103 1018.915 2335.527
91 2.473119 6.061996 14.72948 35.48411 84.76688 200.8324 471.9802 1100.428 2545.724
 92 2.49785 6.183236 15.17137 36.90347 89.00523 212.8823 505.0188 1188.463 2774.839
93 2.522829 6.3069 15.62651 38.37961 93.45549 225.6553 540.3701 1283.54 3024.575
94 2.548057 6.433038 16.0953 39.91479 98.12826 239.1946 578.196 1386.223 3296.786
95 2.573538 6.561699 16.57816 41.51139 103.0347 253.5463 618.6697 1497.121 3593.497
96 2.599273 6.692933 17.07551 43.17184 108.1864 268.759 661.9766 1616.89 3916.912
97 2.625266 6.826792 17.58777 44.89872 113.5957 284.8846 708.315 1746.241 4269.434
98 2.651518 6.963328 18.1154 46.69466 119.2755 301.9776 757.897 1885.941 4653.683
99 2.678033 7.102594 18.65887 48.56245 125.2393 320.0963 810.9498 2036.816 5072.514
100 2.704814 7.244646 19.21863 50.50495 131.5013 339.3021 867.7163 2199.761 5529.041
 10% 11% 12%
1.1 1.11 1.12
1.21 1.2321 1.2544
1.331 1.367631 1.404928
1.4641 1.51807 1.573519
1.61051 1.685058 1.762342
1.771561 1.870415 1.973823
1.948717 2.07616 2.210681
2.143589 2.304538 2.475963
2.357948 2.558037 2.773079
2.593742 2.839421 3.105848
2.853117 3.151757 3.47855
3.138428 3.498451 3.895976
3.452271 3.88328 4.363493
3.797498 4.310441 4.887112
4.177248 4.784589 5.473566
4.594973 5.310894 6.130394
5.05447 5.895093 6.866041
5.559917 6.543553 7.689966
6.115909 7.263344 8.612762
6.7275 8.062312 9.646293
7.40025 8.949166 10.80385
8.140275 9.933574 12.10031
8.954302 11.02627 13.55235
9.849733 12.23916 15.17863
10.83471 13.58546 17.00006
11.91818 15.07986 19.04007
13.10999 16.73865 21.32488
14.42099 18.5799 23.88387
15.86309 20.62369 26.74993
17.4494 22.8923 29.95992
19.19434 25.41045 33.55511
21.11378 28.2056 37.58173
23.22515 31.30821 42.09153
25.54767 34.75212 47.14252
28.10244 38.57485 52.79962
30.91268 42.81808 59.13557
34.00395 47.52807 66.23184
37.40434 52.75616 74.17966
41.14478 58.55934 83.08122
45.25926 65.00087 93.05097
49.78518 72.15096 104.2171
54.7637 80.08757 116.7231
60.24007 88.8972 130.7299
66.26408 98.67589 146.4175
72.89048 109.5302 163.9876
80.17953 121.5786 183.6661
88.19749 134.9522 205.7061
97.01723 149.797 230.3908
106.719 166.2746 258.0377
117.3909 184.5648 289.0022
129.1299 204.867 323.6825
142.0429 227.4023 362.5243
156.2472 252.4166 406.0273
171.8719 280.1824 454.7505
189.0591 311.0025 509.3206
207.9651 345.2127 570.4391
228.7616 383.1861 638.8918
251.6377 425.3366 715.5588
276.8015 472.1236 801.4258
304.4816 524.0572 897.5969
334.9298 581.7035 1005.309
368.4228 645.6909 1125.946
405.2651 716.7169 1261.059
445.7916 795.5558 1412.386
490.3707 883.0669 1581.872
539.4078 980.2043 1771.697
593.3486 1088.027 1984.301
652.6834 1207.71 2222.417
717.9518 1340.558 2489.107
789.747 1488.019 2787.8
868.7217 1651.701 3122.336
955.5938 1833.388 3497.016
1051.153 2035.061 3916.658
1156.269 2258.918 4386.657
1271.895 2507.399 4913.056
1399.085 2783.213 5502.623
1538.993 3089.366 6162.937
1692.893 3429.196 6902.49
1862.182 3806.408 7730.788
2048.4 4225.113 8658.483
2253.24 4689.875 9697.501
2478.564 5205.761 10861.2
2726.421 5778.395 12164.55
2999.063 6414.019 13624.29
3298.969 7119.561 15259.21
3628.866 7902.712 17090.31
3991.753 8772.011 19141.15
4390.928 9736.932 21438.09
4830.021 10807.99 24010.66
5313.023 11996.87 26891.93
5844.325 13316.53 30118.97
6428.757 14781.35 33733.24
7071.633 16407.3 37781.23
7778.796 18212.1 42314.98
8556.676 20215.43 47392.78
9412.344 22439.13 53079.91
10353.58 24907.43 59449.5
11388.94 27647.25 66583.44
12527.83 30688.45 74573.45
13780.61 34064.18 83522.27
LEASING

CASE 1
PURCHASING PRICE 4000
LEASING AMOUNT 1250 (ANNUAL)
t (YEARS) 4
i 8% P.A.

PRESENT VALUE OF LEASING

PV $4,140.16 PURCHASING PRICE

OPTION TO SELECT $4,000.00

MACHINE A MACHINE B
COST 8000 COST 6000
LIFE 7 YEARS LIFE 5
ANNUAL LABOR SAVING 2000 ANNUAL LABOR SAVING 1800
i 7% i 7%
ALTERNATIVE 1:
PRESENT VALUE OF TOTAL ANNUAL LABOR SAVING
MACHINE A MACHINE B
PV $10,778.58 PV $7,380.36
LESS:COST 8000 LESS:COST 6000
NET SAVING $2,778.58 NET SAVING $1,380.36
OPTION TO CHOOSE: MACHINE A

ALTERNATIVE 2:

MACHINE A MACHINE B
ANNUAL COST $1,484.43 ANNUAL COST $1,463.34
ANNUAL LABOR SAVING 2000 ANNUAL LABOR SAVING 1800
NET SAVING $515.57 NET SAVING $336.66
OPTION TO CHOOSE: MACHINE A
YEARS
BOND

FACE VALUE 1000

i 8% (yield rate)
r 6% (coupon rate)
n(maturity period) 10 years

PURCHASING PRICE $865.80

AMORTIZATION OF LOAN
CASE 1
LOAN 80000
n 10 (semi-annual)
r 8% i 0.04
m 2

loan sheet

PERIODIC PRINCIPAL
PAYMENT PERIOD PRINCIPAL IN THE BEGINNING INTEREST PAYMENT REPAID
1 80000 3200.00 9863.28 6663.28
2 73336.72 2933.47 9863.28 6929.81
3 66406.92 2656.28 9863.28 7207.00
4 59199.92 2368.00 9863.28 7495.28
5 51704.64 2068.19 9863.28 7795.09
6 43909.55 1756.38 9863.28 8106.89
7 35802.66 1432.11 9863.28 8431.17
8 27371.49 1094.86 9863.28 8768.42
9 18603.07 744.12 9863.28 9119.15
10 9483.92 379.36 9863.28 9483.92
PRINCIPAL
OUTSTANDING
AT THE END
73336.72
66406.92 36090.45
59199.92 36090.45
51704.64
43909.55 13225.93
35802.66 13225.93
27371.49
18603.07
9483.92
0.00
DISCOUNTING
PV=FV(1-d)^n

CASE 1
FV 2000
D 8% d 0.04
N 4n 8
m 2
PV 1442.779158
DISCOUNT 557.22084203

CASE 2
FACE VALUE 1000
N 2n 4
m 2
PV 900

r 5.20%