guru

MATH-132 Unit 2 Exam Sheet

I Prt= P = principal

1 ntr

A P n

  = + 

 

1 nt

A P

r n

=  +   

I = simple interest

r = annual interest rate

rtA Pe= rt A

P e

= t = time or term of investment or loan (in years)

1 1 ntr

M n

A r n

   + −    =      

1 1

nt

r A

nM r n

     =

   + −    

A = future value or amount accumulated

n = number of times interest is compounded per year

1 1 ntr

M n

P r n

−   − +    =      

1 1

nt

r P

nM r n

−

     =

   − +    

e = Euler’s number

M = installment payment or monthly payment

1 1 nr

Y n

  = + −   

Y = effective annual interest rate or effective annual yield