544 Summary of Formulas

Summary of Formulas
Percentages, percent changes, and applications

3.1 P=R#B
3.3(b)

3.2 3.4(a) Property tax = Assessed value of property # Tax Rate

3.3(a) Pay for Pay Period =

3.4(b)

mathematics of MERCHANDISING

5.2(a) Amount of trade discount = d # L Table 5.6: Merchandising

Calculation Table
5.2(b) N = L (1- d)
5.2(c) N = L (1 - d1) (1 - d2) (1 - d3) ... (1 - d n )
5.2(d) de = 1 - [(1 - d1) (1 - d2) (1 - d3) ... (1 - d n )]

5.3
5.4(a) S = C + M
5.4(b) M = E + P
5.4(c) S = C + E + P
M
=
5.4(d) Rate of markup on cost = ×# 100%
100%
C
M
5.4(e) Rate of markup on selling price =
= ×# 100%
100%
S
5.4(f) BE = C + E
5.5(a) SRed = S - D
5.5(b) D = S - SRed
5.5(c) Rate of markdown = # 100%
5.6(a) PRed = SRed - C - E 5.7(a)

5.6(b) PRed = P - D 5.7(b)

break- even and cost-volume-  profit ANALYSIS

7.1(a) TC = FC + TVC 7.2(a) S # x = FC + (VC # x) + NI

7.1(b) TVC = VC # x FC + NI
7.2(b) xx =
=
(S − VC)
7.1(c) TR = S # x

7.1(d) NI = TR - TC 7.3 FC
xBE==
x
CM
7.1(e) At the break-even point, TR = TC
7.4(a) CM Ratio =
7.1(f) CM = S - VC
7.4(b) NI = (CM Ratio × TR) - FC
7.1(g) CR = CM ×#100%
CR = 100%
S
simple interest and Applications

8.2 I = Prt 8.3(b) S = P (1 + rt)

8.3(a) S=P+I 8.3(c) P= or P = S (1 + rt)-1
 Summary of Formulas 545

COMPOUND INTEREST

9.1(a) FV = PV(1 + i)n 9.5(b) j=m#i

n
9.1(b) PV = or PV = FV(1 + i)
−

9.6(a) n=
9.1(c) I = FV - PV
9.6(b) t=
9.1(d) i=
m
9.7 f = (1 + i) - 1
9.1(e) n=m#t
m1 / m2
9.8(a) i2 = (1 + i1) -1
9.5(a) i= -1
9.8(b) j2 = i2 # m2
Annuities

10.2(a) FV = PMT
10.7(a) n =

10.2(b) PV = PMT
10.7(b) n =
10.3(a) c =

c
10.7(c) t =
10.3(b) i2 = (1 + i) - 1
In the case of ordinary general annuity and general annuity due,
substitute 'i2' for 'i' in the formulas.
10.7(d) n =
10.4(a) FVDue = PMT (1 + i)

10.7(e) n =
10.4(b) PVDue = PMT  (1 + i)

OTHER TYPES OF Annuities

11.2(a) PVPerp = 11.3(a) FV = PMT

11.2(b) PVPerp Due = (1 + i )

11.3(b) PV = PMT

n
= PMT "(1 + g) - 1%
Sum of Constant-
11.3(c) Growth Payments g
bonds and sinking funds

13.2(a) Purchase Price = PVPMT + PVRedemption Value 13.2(b) PMT = FV # b

Business Investment Decisions

14.3 NPV = PVCash Inflows - PVCash Outflows