Appendix: Formulas Used for Chapter 12 Calculations

You may find use for the formulas that underlie the calculations shown in this chapter. You can perform all these calculations on a simple calculator, but a more complex calculator can allow you to be more efficient. Several online financial calculators are available, such as www.dinkytown.net. Reminder: As noted in Chapter 12, “Expect to Pay a Price—Either Now or Later—for the Choices You Make About Handling Your Money,” some rounding is done in these formulas.

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