Appendix: Glossary of Formulas and Definitions

No.	Formula	Definition
1.	$I = P \times r \times t$	Simple interest
2.	$S = P + I = P + (Prt) = P(1 + rt)$	Future value of simple interest
3.	$P = \frac{S}{1+rt}$	Present value of simple interest
4.	P = S(1 – dt)	Present value of simple discount
5.	$S = \frac{P}{1-dt}$	Future value of simple discount
6.	$S = P(1 + i)^{n}$	Compound interest
7.	$S = P(1 - \frac{{d}^{m}}{m})^{-n}$	Compound discount at discount rate
8.	$r_{E} = (1 + \frac{r}{m})^{m} - 1$	Effective rate
9.	D = Sdt	Bank discount
10.	List price x Discount rate	Trade discount
11.	$s_{\bar{n}\mid{i}} = \frac{(1+{i})^{n}-1}{i}$	Future value of an ordinary annuity
12.	$a_{\bar{n}\mid{i}} = \frac{1-(1+{i})^{-n}}{i}$	Present value of an ordinary annuity
13.	$s_{\ddot{n}\mid{i}} = s_{\bar{n}\mid{i}}(1+i)$	Future value of an annuity due
14.	$a_{\ddot{n}\mid{i}}$ = $a_{\bar{n}\mid{i}} (1+i)$	Present value of an annuity due

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