Math and Finance
From FinancialPlanning
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Contents |
Basic Equations of Finance
Overview of "Time value of money"
Present Value/Future Value
Single cash flow - one lump sum invested now, or one lump sum received in the future
Annuity - a series of payments (or deposits) at regular intervals, such as monthly or annually
Applying the Equations to Real-Life Problems
How much will $1,000 grow in 17 years at 6.3% interest?
How much will I have if I invest $200 per month at 7.2% interest, for 20 years?
I owe $250,000 and plan to pay it back over 30 years at 6.5% interest. What will my payments be?
I have $50,000 now, I would like to have $500,000 in 26 years, and I think I'll earn 8% on my investments. How much should I save every year?
How can I figure out what kind of returns I'm getting on my investments?
Practical Tips
Does anyone really do this stuff by hand?
How can I solve financial problems using a calculator?
How can I solve financial problems using Microsoft Excel?
What is the Rule of 72?
