2023-l

MATHEMATICAL FORMULAS FOR CALCULATE MONEY VALUE OVER THE TIME

COMPOUND INTEREST /EFFECTIVE RATE OF INTEREST. (IT IS

USED ALWAYS IN THE LOCAL MARKET IN PERÚ)

1. For calculate the amount of the interest,.I = (((1+i) ^ (n/360)) – 1) * VP

2. For calculate Future Value........ .........VF = ((1+i) ^ (n/360)) * VP

3. For calculate Present Value,..................VP = VF / (1+i) ^ (n/360)

4. For calculate Factoring o Forfaiting......VP = VF / (1+i) ^ (n/360)

5. For calculate a FLAT Comisión : Amount of the transacction or

Present Value multiplied by the rate of the commision (Do not
considerer the period of time)

6. For calculate the Rate of Interest applied in certain period of time ( i )

2 Alternatives:

6.1. ((VF/VP) – 1) * 100

6.2 ((Total interests + Total Commisions) / (Total loan))* 100

7. .FOR ANNUALIZING A RATE OF INTEREST :

(((1+i) ^ (360/n)) – 1) * 100

8. TO TRANSFORM AN EFFECTIVE RATE OF INTEREST LESS

THAN 1 YEAR TO 1 YEAR (TEA-ANNUAL EFFECTIVE RATE OF
INTEREST or TASA EFECTIVA ANUAL)

FOR EXAMPLE:

8.1.- TRANSFORM AN EFFECTIVE MONTHLY RATE OF INTEREST

OF 4 % IN 1 YEAR (TEA)

TEA =(((1+TEM)^(360/30)) -1) * 100

8.2.- TRANSFORM AN EFFECTIVE QUARTERLY RATE OF INTEREST

OF 6.5 % IN 1 YEAR TEA (ANNUAL RATE OF INTEREST)

TEA : (((1+TET)^(360/90))-1)*100

9. TO TRANSFOR AN ANNUAL RATE OF INTEREST (TEA) IN A LESS

EFFECTIVE RATE OF INTEREST
FOR EXAMPLE:

9.1. TRANSFORM A TEA OF 18%

TO A (TET) QUARTERLY EFFECTIVE RATE OF INTEREST:

TET = (((1+18 %)^(90/360))-1)*100

9.2. TRANSFORMA A TEA OF 25.50 %

TO A (TES) SEMMESTRAL EFFECTIVE RATE OF INTEREST:

TES = (((1+25.50 %)^(180/360))-1)*100

10. FOREIGN FUNDS FROM OTHER COUNTRIES/NOMINAL RATE OF

INTEREST (THIS IS USED IN FOREING MARKETS):

11. To calculate the amount of the interest,................I = K* i * t

360
12. To calculate the Future Value: FV= I + VP

13. ANNUITIES