Economics

Financial mathematics

Interest, future and present value, loans and returns.

Economics

Compound interest

A = P × (1 + r / 100)ⁿ→
Economics

Simple interest

I = P × r × n / 100→
Economics

Simple interest amount

A = P(1 + rn / 100)→
Economics

Present value

PV = FV / (1 + r / 100)ⁿ→
Economics

Monthly loan payment

A = P · i(1 + i)ⁿ ÷ ((1 + i)ⁿ − 1); i = r ÷ 1200→
Economics

Effective annual rate

EAR = ((1 + r / m)ᵐ − 1) × 100%→
Economics

Return on investment

ROI = (R − C) / C × 100%→
Economics

Compound interest future value

S = P(1 + r/100)ᵗ→
Economics

Annuity future value

S = A((1 + i)ⁿ − 1) / i→
Economics

Annuity present value

P = A(1 − (1 + i)⁻ⁿ) / i→
Economics

Real interest rate

rᵣ = ((1 + r)/(1 + π) − 1) × 100%→
Economics

ROI from profit and investment

ROI = Profit / I × 100%→
Economics

Payback period

t = I / CF→
Economics

Current inventory days

Nₜ = I / 2→
Economics

Safety inventory days

Nₛ = Nₜj→
Economics

Inventory days norm

N = Nₜ + Nₛ + Nₜₑₓ→
Economics

Inventory normative

W = NDp→
Economics

Work-in-progress coefficient

K = M + (1 − M) / 2→
Economics

Daily WIP normative

W = TCDK→
Economics

Annual WIP normative

W = T(C/360)K→
Economics

Finished goods normative

W = ND→
Economics

Total working capital normative

W = Wᵢ + Ww + Wf + Wg→