Financial Management: Core Concepts, Third Edition

Key Formulas and Spreadsheet Functions

Key Equations	Spreadsheet Function
$$FV=PV\times {\text{ (1+r)}}^n$$	3.2	FV (rate, nper, pmt, pv, type)
$$PV=FV\times \frac{1}{{(1+r)}^n}$$	3.3	PV (rate, nper, pmt, fv, type)
$$r={\left(\frac{FV}{PV}\right)}^{1/n}-1$$	3.4	RATE (nper, pmt, pv, fv, type)
$$n=\frac{\text{ ln}\left(FV/PV\right)}{\text{ ln}\left(1+r\right)}$$	3.5	NPER (rate, pmt, pv, fv, type)
$$FV=PMT\times \frac{{\left(1+r\right)}^n-1}{r}$$	4.3	FV (rate, nper, pmt, pv, type)
$$PV=PMT\times \frac{1-1/{\left(1+r\right)}^n}{r}$$	4.4	PV (rate, nper, pmt, fv, type)
$$PMT=\frac{PV}{\frac{1-\left[1/{\left(1+r\right)}^n\right]}{r}}$$	4.9	PMT (rate, nper, pv, fv, type)
$$n=\frac{\text{ln}\left(\frac{\left(FV\times r\right)}{PMT}+1\right)}{\text{ln}\left(1+r\right)}$$	4.10	NPER (rate, pmt, pv, fv, type)
$$\text{variance }\left(X\right)=\frac{a{\left(X_i-\text{average}\right)}^2}{n-1}$$