Math 1316 Formulas for Test # 1 – Dr. Minerva Cordero

In the following formulas we have:

amount deposited or withdrawn at the end of each period.

annual interest rate

number of compounding per period

= interest rate per period

= total number of compounding

time in years

For simple interest:

For compound interest:

For continuously compounded interest:

$A = Pe^{rt}$

Future value of an ordinary annuity:

Payment of an ordinary annuity:

Present value of an ordinary annuity:

$PV = P times left( frac{1 - (1 + r)^{-n}}{r} right)$

Amortization Formula :
(payment size for loans)

$P = frac{PV times r}{1 - (1 + r)^{-n}}$

Unpaid balance (n-k payments left):

$B = PV times (1 + r)^n - P times left( frac{(1 + r)^n - 1}{r} right)$