Series 7 Formulas

Front 1

Simple Interest = (Principal x Rate) x Time

Back 1

Simple Interest
Interest is the cost of borrowing money, or is the amount you receive from lending money. To calculate, you take the amount of the loan, known as the principal, and multiply it by the rate, which is the annual percentage being charged. Multiply the result by the time to maturity.

Front 2

Future Value (FV) = PV x (1+r)n

Back 2

• FV is future value (the total at the end of the period, for which you are solving)
• PV is the present value (the amount deposited today)
• r is the interest rate
• n is the number of periods for which r is compounded (years, in this simple example).

Front 3

Present Value (PV) = FV ÷ (1+r)n

Back 3

Present Value is the mathematical concept that compares the value of a dollar today versus the value of that same dollar in the future.

Front 4

Variance = σ² = Σ (X - μ)2
N

Back 4

• Sum (Σ)
• Number (N)
• Mean (μ)

Front 5

Covariance = Cov (r1,r2) = 1/N * Σ (r1i - r1ave)*(r2i - r2ave)

Back 5

Covariance: the measure of correlation between two different quantities.