Present
What is the Official Title of section "2 - 8" ?
Present Value Investments
What is the Official Title of Section 2 - 7 ?
Future Value of Investments
What is the Simple Interest Formula ?
What are the 5 Present Value Letters ?
B, P, R, N, T
What does the ^ symbol mean ?
^ symbol (called a caret) means exponentiation (raising a number to a power). [1, 2]
What Does the 3 letters in PRT mean ?
P= Principal Balance
R = Rate of Interest
T = Time/ Number of Years
What Does the 5 Present Value Letters mean ?
B= Ending Balance, P=Principal/Original Balance
R = Interest Rate, N= # of Time Interest Comp Anly
T = # of Yrs
What does the symbol (n*t) mean ?
It means that you are multiplying the number times interest being compounded by number of years.
What are the 7 major Compounding Interest Values
Annual, Semiannual, Quarterly, Weekly, Bi-Monthly, Monthly, Daily
What is the Present Value Investment Formula ?
P = B/
(1 + r/n)^(n*t)
What is the formula for Future Value of Investments ?
B= P((1 + r/n)^nt-1)
____________________
r/n
What does each of the 7 Compound Values mean ?
Annually -(n=1), Semi-Annually - (n=2), Quarterly(n=4), Weekly - (n=52), Bi Monthly-(n=6), Monthly-(n=12), Daily -(n=365)
What is the Present Value Periodic Formula ?
P = B * r/n
__________________________
((1 +(r/n))^00-1
How do you convert ((1 + 3.5%/365)) to a decimal format ?
0.027493151
What is the Compound Interest Formula ?
B = P(1 +r/n)nt