Compound Interest: Compound Amount at a Fraction of a Period:
𝑟 𝑖= Step 1: F1 = P(1 + i)n 𝑚 Step 2: F = F1(1 + rt) n = t(m) F = P(1+i)n Present Value at a Fraction of a Period: 𝐹 𝑃= or P = F(1 + i) –n Step 1: P1 = F(1 + i) –n (1+𝑖)𝑛 Step 2: P = P1(1 + rt)
Time in Compound Interest: Nominal Rate of Compound Interest:
𝐹 1 𝑙𝑜𝑔(𝑃) 𝐹 𝑛 𝑛= 𝑖= (𝑃) −1 log(1+𝑖) 𝑟 and since n = tm, and since 𝑖 = , 𝑚 𝑛 therefore, 𝑡 = therefore, r = i(m) 𝑚
(East Central and Eastern Europe in the Middle Ages, 450-1450_ vol. 21) Paul Milliman-_The Slippery Memory of Men__ The Place of Pomerania in the Medieval Kingdom of Poland-Brill Academic Publishers (.pdf