Transcription of CL’s Handy Formula Sheet
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CL s Handy Formula Sheet (Useful formulas from Marcel Finan s FM/2 Book) Compiled by Charles Lee 8/19/2010 Interest Interest Discount Simple Compound Simple Compound a(t) Period when greater Interest Formulas Force of Interest The Method of Equated Time The Rule of 72 The time it takes an investment of 1 to double is given by Date Conventions Recall knuckle memory device. (February has 28/29 days) Exact o actual/actual o Uses exact days o 365 days in a nonleap year o 366 days in a leap year (divisible by 4) Ordinary o 30/360 o All months have 30 days o Every year has 360 days o Banker s Rule o actual/360 o Uses exact days o Every year has 360 days Basic Formulas
CL’s Handy Formula Sheet (Useful formulas from Marcel Finan’s FM/2 Book) Compiled by Charles Lee 8/19/2010. Interest Interest Discount Simple Compound Simple Compound a(t) Period when greater Interest Formulas o Force of Interest o The Method of Equated Time
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