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Page 1: Business Finance FORMULA SHEET

Business finance Formula sheetTo remember Future value =FV

Present value=PV

Number of years=n

Interest =i

Simple formula #1= discounting1.Future valueFV=PV(1+i)^n2.present valuePV=FV/(1+i)^n

PAYMENTFor future valuePMT=FV/(1+i)^n-1/iFor present valuePMT=PV(1-(1+i)^n)

AnnuityOrdinary annuity1.timeline equationFVAn=PMT(1+i)^n-1+PMT(1+i)^n-2+………..2.simple equationFVAn=PMT [(1+i)-1/i]3.tableFVAn=(FVIFAi,n)

Annuity (due)1.timelineFVAn(due)=PMT(1+i)^n+PMT(1+i)^n-1+…………2.simple formulaFVAn(duE)=PMT[(1+i)^n-1/i](1+i)3.tableFVAn(due)=PMT(FVIFA,I,n)(1+i)

UN EVEN CASH FLOW STREAMPRESENTPV=CF1(1/1+I)^1+…………FUTURE VALUEFV=CF1(1+I)^n-1+………….