This document outlines key formulas for calculating compound interest with different conversion periods such as annually, semi-annually, quarterly, and monthly. It defines the periodic rate as the interest rate per conversion period, which is calculated as the annual interest rate divided by the number of conversion periods in a year. Formulas provided calculate the future/compound amount, present value, annual interest rate, and time period, based on inputs like principal, interest rate, number of conversion periods, and future/compound amount.

1. General Mathematics

3. m Conversion period Annually m=1
Semi-annually m=2
Quarterly m=4
Monthly m=12
n Total number of
conversion periods
n=mt; where t is the
no. of years
i Periodic rate The interest rate per
conversion period =
r/m where r is the
annual interest rate.

4. Required Formulas
Compound/Final Amount /
Future Value F
F = P(1+i)n
Present value (P) P=F(1+i)-n
Interest rate (r)
𝑟 = 𝑚
𝐹
𝑃
1
𝑛
− 1
Time ( t )
𝑡 =
𝑙𝑜𝑔
𝐹
𝑃
𝑚 𝑙𝑜𝑔 1 + 𝑖

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