Appendix A Summary of Formulas

Accumulated value of a series of deposits:

D×( ( 1+R ) n -1 )÷R=A
where: D=periodic deposit amount
R=periodic interest rate
n=number of periods
A=accumulated value

Adding fractions:

( n 1 × d 2 )+( d 1 × n 2 )= n a d 1 × n 2 = d a
where: n1=numerator, first fraction
d1=denominator, first fraction
n2=numerator, first fraction
d2=numerator, second fraction
na=numerator, answer
da=denominator, answer

After-tax return:

O×( 1T )=A
where: O=operating (pre-tax) profit
T=combined federal and state tax rate (in decimal form)
A=after-tax profit

Amortization:

C÷M=A
where: C=total cost
M=months to amortize
A=amortization per month

Annual compounding:

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