MAI SL Financial Maths
Using the Finance Solver
Compound Interest
Loans
Annuities
Number of years
Number of payments/instalments
(usually number of years x 12 since
usually monthly payments)
Number of payments/instalments
(usually number of years x 12 since
usually monthly payments)
N
I%
Interest rate for the year (APR)
PV
The original investment amount.
Negative - you’ve ‘given’ the money
away
The amount borrowed.
Positive - you have the money in your
possession
Lump-sum deposited originally.
Negative - you’ve ‘given’ the money
away
PMT
0, unless further regular deposits
are being made into the investment
(in which case will be negative)
Regular repayment of the loan. Usually
monthly.
Negative - you’re giving the money
away
Regular payment received.
Positive - you get this money.
FV
The value of the investment after n
years
(will be positive)
The amount left to repay on the loan
after n payments. Set FV = 0 when
working out how to pay off the loan over
n instalments.
The amount left in the ‘pot’ after n
payments.
Set FV = 0 if you want to find n/PMT
etc so that annuity is ‘used up’.
PpY
Number of interest payments made
into the account each year (often 1)
Number of payments per year (often
monthly i.e. 12)
Number of payments per year (often
monthly i.e. 12)
CpY
Number of compounding periods per
year
Number of compounding periods per
year, usually same as PpY
Number of compounding periods per
year, usually same as PpY
Keywords:
APR
amortization