Finance Math
Everything on SkillVeris tagged Finance Math — collected across the glossary, study notes, blog, and cheat sheets.
16 resources across 1 library
Interview Questions(16)
How to Solve Simple and Compound Interest Problems
Simple interest grows linearly on the original principal (SI = P×R×T/100), while compound interest grows on principal plus accumulated interest, giving CI = P×…
How to Solve Compound Interest with Half-Yearly Compounding
When interest compounds half-yearly, halve the annual rate and double the number of periods before applying the compound interest formula, so CI = P×(1+(R/2)/1…
How to Solve Difference Between CI and SI Problems
The difference between compound and simple interest arises purely from interest-on-interest, and for two years it reduces to a clean shortcut: CI − SI = P×(R/1…
How to Solve Problems on Installments (Loan Repayment)
Installment problems are solved by equating the loan’s present value to the sum of each future installment discounted back to today at compound interest, since…
How to Solve Stocks and Shares Aptitude Problems
Stocks and shares problems separate face value (the printed denomination), market value (the price actually paid), and dividend (a percentage of face value, no…
How to Solve True Discount Problems
True discount is the interest on the present value of a future sum, not on the sum itself, so TD = (Amount × Rate × Time) / (100 + Rate × Time), derived from P…
How to Solve Banker's Discount Problems
Banker's discount (BD) is the simple interest a bank charges upfront on the face value of a bill for the unexpired period, computed as BD = Face Value × Rate ×…
How to Solve Banker's Gain Problems
Banker's gain is the bank's extra profit from discounting a bill on its face value instead of its true present value, BG = BD − TD, and it equals both TD×R×T/1…
How to Solve Simple Interest with Multiple Rates
When a principal earns simple interest at different rates over different time segments, total interest is the sum of the interest earned in each segment separa…
How to Solve Compound Interest Compounded Quarterly
When interest compounds quarterly, the annual rate is divided by 4 and the number of compounding periods is multiplied by 4, giving CI = P×(1 + R/(4×100))^(4T)…
How to Solve Sinking Fund Problems
A sinking fund is a series of equal periodic deposits, each earning compound interest, that accumulates to a target future amount, so the required deposit is f…
How to Solve Simple Interest Installment Repayment Problems
A simple-interest installment problem is solved by summing each installment’s principal plus the simple interest it accrues from its payment date to the final…
How to Solve Compound Interest Installment Repayment Problems
A compound-interest installment problem is solved by discounting each future installment back to present value using (1+R/100) raised to the number of years un…
How to Solve Depreciation Value Problems
Depreciation value problems shrink an asset’s value each period by a fixed percentage of its current (not original) worth, so the value after n years is V = P×…
How to Solve Present Worth Problems
Present worth is the sum of money that, if invested today at the given compound rate, would exactly grow to a stated future amount due after a fixed time, comp…
How to Solve Basic Annuity Problems
An annuity is a series of equal periodic payments, and its present worth is the sum of the present values of every individual payment, discounted back at the g…