1 FINANCIAL MANAGEMENT 2 Formula Sheet Future Value: Future Value with compounding periods:

Present Value:

Present Value with m compounding periods:

Number of years (annually compounding)

Number of years (m compounding)

Interest rate (if annually compounding)

Interest rate (if m compounding)

Effective Annual Rate (for compounding interest rate)

Effective Annual Rate (for continuous compounding interest rate) Future Value of Ordinary Annuity

Future Value of Ordinary Annuity with m compounding periods

2 Number of Years for Ordinary Annuity

Number of Years for Ordinary Annuity (m compounding)

Payment Based on the Future Value of Ordinary Annuity

Present Value of Ordinary Annuity

Present Value of Ordinary Annuity with m compounding periods

Annuity Payments from Present value (and for Amortized Loans)

Future Value of Annuity Due Present Value of Annuity Due Present Value for Level Perpetuity

Present Value for Growth Perpetuity

i = interest rate; quoted annual rate; annual percentage rate g= growth rate t = number of years n = number of periods = number of years * number of compounding periods per year m = number of compounding periods per year APR = Annual Percentage Rate = interest rate per period * compounding periods per year PMT = Periodic payment; constant dollar amount provided (assumed to be made at the end of the period, unless specified otherwise) PMTinitial = payment made at the end of the first period

3 FINANCIAL MANAGEMENT 2 Formula Sheet (ver. 2)

Future Value: Future Value with compounding periods:

Present Value:

Present Value with m compounding periods:

Number of years (annually compounding)

Number of years (m compounding)

Interest rate (if annually compounding)

Interest rate (if m compounding)

Effective Annual Rate (for compounding interest rate)

Effective Annual Rate (for continuous compounding interest rate) Future Value of Ordinary Annuity

Future Value of Ordinary Annuity with m compounding periods

4 Number of Years for Ordinary Annuity

Number of Years for Ordinary Annuity (m compounding)

Payment Based on the Future Value of Ordinary Annuity

Present Value of Ordinary Annuity

Present Value of Ordinary Annuity with m compounding periods

Annuity Payments from Present value (and for Amortized Loans)

Future Value of Annuity Due Present Value of Annuity Due Present Value for Level Perpetuity

Present Value for Growth Perpetuity

i = interest rate; quoted annual rate; annual percentage rate g= growth rate t = number of years n = number of periods = number of years * number of compounding periods per year m = number of compounding periods per year APR = Annual Percentage Rate = interest rate per period * compounding periods per year R = Periodic payment; constant dollar amount provided (assumed to be made at the end of the period, unless specified otherwise)

5 Rinitial = payment made at the end of the first period