Simple Interest r = nominal interest rate d = rate of discount for the period

𝑰 = 𝑷𝒏𝒊 m = number of compounding periods involved

𝑭 = 𝑷(𝟏 + 𝒏𝒊) per year i = rate of interest for the same
period
Where: Effective Rate of Interest
I = interest Effective rate = F1 – 1 = (1+i)^m – 1 INFLATION
P = principal or present worth 𝐹𝐶 = 𝑃𝐶(1 + 𝑓) ^n
n = number of interest periods ECONOMIC EQUIVALENCE
i = rate of interest per interest period 𝑃 = 𝐹(1 + 𝑖)^−𝑛 𝑭 =𝑷/(𝟏 + 𝒇)^n
F = accumulated amount or future 𝐹 = 𝑃(1 + 𝑖)^𝑛
worth 𝑭 = 𝑷( 𝟏 + 𝒊 /𝟏 + 𝒇 )^n
CONTINUOUS COMPOUNDING AND
COMPOUND INTEREST DISCRETE PAYMENTS 𝜽 = 𝒊 − 𝒇/𝟏 + 𝒇
𝑭 = 𝑷(𝟏 + 𝒊)^𝒏 𝒐𝒓 𝑭 = 𝑷(𝟏 +𝒓/𝒎)^𝒎𝒕 𝑭 = 𝑷𝒆^𝒓𝒏 𝑭 = 𝑷𝑪(𝟏 + 𝜽)^n
𝑷 = 𝑭(𝟏 + 𝒊)^ −𝒏 𝑷 = 𝑭𝒆^−𝒓n
where
Where: Where: PC = present worth cost of a
P = principal, present amount r = nominal rate of interest per year commodity
F = future amount, compound amount r/m = rate of interest per period FC = future cost of the same
i = interest rate per compounding m = number of interest periods per commodity
period year f = annual inflation rate
r = nominal annual interest rate mn = number of interest periods in n n = number of years
n = total number of compounding in t years
years TAXES
t = number of years DISCOUNT 𝑰 ′ = 𝑰 − 𝑻 = (𝟏 − 𝒕)𝒊𝑷
m = number of compounding per year Rate of Discount 𝜽 = (𝟏 − 𝒕)𝒊 − 𝒇/(𝟏 + f)
𝒅 = 𝟏 − (𝟏 + 𝒊)^−𝟏 𝐹 = 𝑃𝐶(1 + 𝜃)^𝑛
Nominal Rate of Interest 𝒊 =𝒅/(𝟏 − d)
𝒊 = 𝒓/m 𝑑 =𝑑𝑖𝑠𝑐𝑜𝑢𝑛𝑡/𝑝𝑟𝑖𝑛𝑐𝑖𝑝𝑎𝑙
𝐼 = 𝑃𝑛𝑖
Where: where:
i = rate of interest per interest period