BU413 Final: Final Exam Formula Sheet.pdf
Document Summary
Fv (or pv) of annuity due: = (fv of ordinary annuity) (1+i) Fva = (1+k) n 1 x pmt. Geometric mean = n root [(1+i1) x (1+i2) x (1+i3)] - 1. Ear = [ 1 +( k / n) ] n 1 where n= no. of periods in a year. Real vs nominal interest: 1+ knom = (1+kr)(1+i) Effective monthly interest (m) => (1+m)n = [ 1 + k/2] 2 where n = no. of periods in a year. Long term mortgage financing: pva = pmt x 1/m [ 1- 1 / (1+m) n ] Simple interest amortized loan formula pv * ( 1 + i )n = pmt x [ ( 1 + i )n - 1 ] / i. Tds = (shelter costs + other debt payments)/ gross family income. Pr exemption = [(yrs as pr after 1971 + 1) / yrs owned after 1971] x gain. After tax discount rate = k x (1-t)
