Financial Maths

1. Relative Error=Error/True Value
2. Percentage Error=Error/True Valuex100
3. Accumulated Error=the collected inaccuracy that can occur when multiple errors are combined

1. Mark-up=Profit/CPx100
2. Margin=Profit/SPx100
3. Percentage loss=Loss/CPx100

1. Investments
   1. AER
   2. Pension Funds: Annuities
2. Loans
   1. APR
3. Formula: F=P(1+i)^t (on pg30)
4. Continuous Compounding Formula: F=Pe^rt

1. Deductions on Income
   1. Statutory
      1. Income Tax
      2. PRSI
      3. USC
   2. Non-statutory
      1. Pension Contributions
      2. Trade Union Subs
      3. Health Insurance Payments

Annotations:

• This is the value of money when factoring in a given amount of interest earned overa  given time period. This is a concept that says it is more valuable to receive a sum of money now than in a year or two, asif you receive it now you can invest it and earn interest on it

1. Present Value aka Present Discounted Value
   1. Used to calculate:

      Annotations:

      • -Market value of a bond -Amount of each regular loan payment -amount to invest now to receive set amount in future -size of pension fund required to give a fixed income for a certain number of years

1. Term Loans/Mortgages