Flashcards
Financial Math
Cards in this deck (38)
- 1A-angle-n(1-v^n)/i
- 2S-angle-n(1+i)^n-1/i
- 3Perpetuity Immediate A-angle-infinity1 / i
- 4m | a-angle-nv^m (a-angle-n)
- 5d =(i/1+i) = iv = 1-v
- 6v =1/(1+i) = 1-d = e^-delta
- 7delta =ln(1+i)
- 8Compound -->(1+i)^t = (1-d)^-t = e^(delta*t)
- 9Compound <--v^t = (1-d)^t = e^(-delta*t)
- 10Simple Interest vs Compound InterestAV_t = P(1+it)
&
AV_t = P(1+i)^t - 11Varying Force of InterestPV is negative integral
- 12PV of increasing annuity-immediate
- 13AV of increasing annuity-immediate
- 14PV of Increasing perpetuity-immediate
- 15PV of decreasing annuity immediate
- 16AV of decreasing annutiy immediate
- 17PV of Continuously Increasing Annuitiy
- 18AV of Continuously Increasing Annuitiy
- 19Continuously varying paymentAVx, 2nd integral is positive and from t to x
- 20Compound Immediate
- 21pthly annutiyi(p) on the bottom
- 22Relationship between ireal Inflation and Interest
- 23Net Present Valuer is IRR when NPV=0
- 24Dollar-weighted
- 25Time-Weightedmultiply, don't add
- 26Amortization Method Level Payment of P
- 27Amortization Method Balance at time t
- 28Amor Interest Paid in Payment t
- 29Amor Principal Portion of Loan
- 30Sinking Fund Method Annual PaymentsService Payment + Sinking Fund Payment
- 31Sinking Fund Method Net Amount Outstanding at t
- 32General Sinking Fund
- 33Price of Bond
- 34Book Value of a BondBVt= P(1+i)^t - Frs_ni
BV is value after purchase but before maturity
- 35Premium AmortizationHow much BV decreases in value
- 36PV of Stock
- 37Price-to-earnings (P/E) ratio
- 38Dividend Growth ValuationP0=div1/ r-g