These are important formulae to be studied in conjunction with the other study materials. Once understood your chances of passing this module is greatly enhanced.
HMS 1
FORMULA SHEET – MAC2602
QUESTION 1 - TIME VALUE OF MONEY (TVM)
1. SIMPLE INTERST: I=PxRxT → I = simple interest, P = principal, R = interest rate and T = time
2. COMPOUND INTERST: I = P(1+i) → I = compound interest, P = principal and i = interest rate
3. FUTURE VALUE (SINGLE PAYMENT – 1 PERIOD): FV = PV(1 + i) → FV = future value, PV = present value, i = interest rat
n
4. FUTURE VALUE (SINGLE PAYMENT – MULTIPLE PERIODS): FV = PV(1 + i) → FV = future value, PV = present
value, i = interest rate and n = Number of years/periods
5. FUTURE VALUE (ORDINARY ANNUITY): → I = Annuity amount or payment, i = Interest rate, n =
Number of years or periods
11. PERIODIC RATE:
6. FUTURE VALUE (ANNUITY DUE):
12. EFFECTIVE INTEREST RATE
7. PRESENT VALUE (SINGLE PAYMENT):
13. NOMINAL RATE
8. PRESENT VALUE (ORDINARY ANNUITY):
14. INTERPOLATION
9. PRESENT VALUE (PERPETUITY):
15. EXTRAPOLATION
10. PRESENT VALUE (ANNUITY DUE):
16. PERIODIC PAYMENT (PMT)
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through EFT, credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying this summary from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller ivann. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy this summary for R55,00. You're not tied to anything after your purchase.
