Module+18000+XVI+Formulas

XVI. Module 18000 Formulas rrw

**Formulas **

**(alphabetical listing) **

The formula for **__Compound Interest__** is:


 * P n = P 0  ( 1 + I ) ^ n ||  || where: ||   || P n  = Value at the end of n time periods ||
 * ||  ||   ||   || P 0  = Beginning value ||
 * ||  ||   ||   || <span style="font-family: 'Times New Roman','serif'; font-size: 18.6667px;">I = Interest ||
 * ||  ||   ||   || <span style="font-family: 'Times New Roman','serif'; font-size: 18.6667px;">n = Number of periods ||


 * <span style="font-family: 'Times New Roman','serif'; font-size: 18.6667px;">Future Value Formula: **


 * <span style="font-family: 'Times New Roman','serif'; font-size: 18.6667px;">FV = PV ( 1 + i ) ^ n ||  || <span style="font-family: 'Times New Roman','serif'; font-size: 18.6667px;">where: ||   || <span style="font-family: 'Times New Roman','serif'; font-size: 18.6667px;">FV = Future Value ||
 * ||  ||   ||   || <span style="font-family: 'Times New Roman','serif'; font-size: 18.6667px;">PV = Present Value ||
 * ||  ||   ||   || <span style="font-family: 'Times New Roman','serif'; font-size: 18.6667px;">i = Interest rate per period ||
 * ||  ||   ||   || <span style="font-family: 'Times New Roman','serif'; font-size: 18.6667px;">n = Number of compounding periods ||


 * <span style="font-family: 'Times New Roman','serif'; font-size: 18.6667px;">Present Value Formula: **


 * <span style="font-family: 'Times New Roman','serif'; font-size: 18.6667px;">PV = FV / ( 1 + i ) ^ n ||  || <span style="font-family: 'Times New Roman','serif'; font-size: 18.6667px;">where: ||   || <span style="font-family: 'Times New Roman','serif'; font-size: 18.6667px;">PV = Present Value ||
 * ||  ||   ||   || <span style="font-family: 'Times New Roman','serif'; font-size: 18.6667px;">FV = Future Value ||
 * ||  ||   ||   || <span style="font-family: 'Times New Roman','serif'; font-size: 18.6667px;">i = Interest rate per period ||
 * ||  ||   ||   || <span style="font-family: 'Times New Roman','serif'; font-size: 18.6667px;">n = Number of compounding periods ||

<span style="font-family: 'Times New Roman','serif'; font-size: 16px;">References used in the formulas and terms:

<span style="font-family: 'Times New Roman','serif'; font-size: 16px;"> __ [] __ <span style="font-family: 'Times New Roman','serif'; font-size: 16px;">__ [] __ <span style="font-family: 'Times New Roman','serif'; font-size: 16px;">__ http://www.netmba.com/finance/time-value/present/ __