business math equations

equations from math for business textbook appendix

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Flip-Modus

R= D/ (1-DT)

T=time in years

D= R/(1+RT)

simple discount and intrest rate

M=P(1+i)ⁿ

P is dollars invested

i is rate of intrest per period

n is number pf periods

M is compounded amount

I is earned Intrest

I=M-P

compound interest

P= M/(1+i)ⁿ

^{i is intrest per period}

^{n is number of periods}

^{P is present value}

^{M is future intrest}

present value of compound intrest

U=F(N/P) (1+N / 1+P)

U= unearned intrest, N= number of payments remaining

F=finace charge, P=total number of payments

unearned intrest

P = (1+i)ⁿ

lump sum compound future amount

current assets/current liabilities

current ratio

liquid assets/current liabilities

acid test ratio

net income after taxes/ average owner equity

ratio of net income to owner equity