Mathematics General 2
FORMULAE AND DATA SHEET
Financial Mathematics
Data Analysis
Simple interest
Mean of a sample
I = Prn
P
r n x=
sum of scores number of scores
is initial amount is interest rate per period, expressed as a decimal is number of periods
z-score
For any score
x, z= Compound interest
A = P (1 + r )
A
P r n
n
x s is final amount is initial amount
is mean is standard deviation
Outlier(s)
is interest rate per period, expressed as a decimal is number of compounding periods
score(s) less than
r n FV
(1 + r )
n
,
score(s) more than
FV = PV (1 + R )
QL
QU
IQR
n
is interest rate per period, expressed as a decimal is number of compounding periods
r x y
is amount of depreciation per period is number of periods
standard deviation of y scores standard deviation of x scores
is correlation coefficient
x scores is mean of y scores is mean of
Normal distribution
•
n
•
S is salvage value of asset after n periods
V0 is initial value of asset r is depreciation rate per period, expressed as
3240
is interquartile range
y-intercept = y − (gradient × x )
n periods
Declining-balance method of depreciation
n
is upper quartile
gradient = r ×
is initial value of asset
S = V0 (1 − r )
is lower quartile
y = gradient × x + y-intercept
S = V0 − Dn is salvage value of asset after
QU + 1.5 × IQR
Least-squares line of best fit
Straight-line method of depreciation
S
V0
D n QL − 1.5 × IQR
or
Present value and future value
PV =
x−x s approximately 68% of scores have z-scores between –1 and 1 approximately 95% of scores have
z-scores between –2 and 2
•
a decimal is number of periods
–1–
approximately 99.7% of scores have z-scores between –3 and 3
Spherical Geometry
Circumference of a circle
C = 2p r or