This document provides an overview of various financial formulas related to topics like the time value of money, financial instruments, and statistical analysis. It introduces common symbols and variables used in financial formulas. The rest of the document lists and describes specific formulas for calculating future values, present values, payments, cash flows, and other financial values.
This document provides an overview of various financial formulas related to topics like the time value of money, financial instruments, and statistical analysis. It introduces common symbols and variables used in financial formulas. The rest of the document lists and describes specific formulas for calculating future values, present values, payments, cash flows, and other financial values.
This document provides an overview of various financial formulas related to topics like the time value of money, financial instruments, and statistical analysis. It introduces common symbols and variables used in financial formulas. The rest of the document lists and describes specific formulas for calculating future values, present values, payments, cash flows, and other financial values.
This document provides an overview of various financial formulas related to topics like the time value of money, financial instruments, and statistical analysis. It introduces common symbols and variables used in financial formulas. The rest of the document lists and describes specific formulas for calculating future values, present values, payments, cash flows, and other financial values.
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Financial Formulas and Financial Equations
Financial math has as its foundation many basic finance formulas related to the time value of money. In addition, particulars related to certain financial instruments (bonds for example) are calculated using derivatives of these basic formulas. Other formulas used in financial math are related to probability, randomness and statistical analysis.
The financial equations below are helpful as they are. However, using the financial formulas provided here, one may also generalize and calculate answers for even more complex financial problems.
Symbols and Variables in Financial Formulas
One important key to understanding formulas for financial math is knowledge of what financial symbols and variables represent.
The chart of symbols (located at the right) offers an
explanation of the financial variables used in the formulas provided below.
