Appendix A: Tables and Reference Information 159
Financial Formulas
This section contains financial formulas for computing time value of
money, amortization, cash flow, interest-rate conversions, and days
between dates.
Time Value of Money
where: PMT =0
The iteration used to compute i:
where: PMT
y
x
C/Y
P/Y
I%
ƒ
=
=
=
=
=
0
C/Y ÷ P/Y
(.01 × I%) ÷ C/Y
compounding periods per year
payment periods per year
interest rate per year
where: x=i
y=P/Y ÷ C/Y
where: k=0 for end-of-period payments
k=1 for beginning-of-period payments
ie
yx1+()ln×()
[]1–=
i–FV PV÷()
1N÷()
1–=
0PV PMT Gi
11i+()
N–
–
i
------------------------------FV 1i+()
N–
×+×+=
I%100CY e
yx1+()ln×()
1–[]×⁄×=
Gi1ik×+=
N
PMT GiFV i×–×
PMT GiPV i×+×
----------------------------------------------


ln
1i+()ln
----------------------------------------------------------=