Annual Interest Formula Label

Effective Yield FormulaEffective Yield Formula

Finance Formulas / July 31, 2018 / Luz Tyson

In marketing, customer lifetime value (CLV or often CLTV), lifetime customer value (LCV), or life-time value (LTV) is a prediction of the net profit attributed to the entire future relationship...

Accrued Interest FormulaAccrued Interest Formula

Finance Formulas / July 28, 2018 / Aniyah Booth

This ratio measures the financial leverage of a company. Companies with higher levels of liabilities compared with assets are considered highly leveraged and more risky for lenders....

Compounded Semiannually FormulaCompounded Semiannually Formula

Finance Formulas / July 30, 2018 / Avalynn Orr

An individual starts a business and incurs startup costs of \$50,000. During the first year of operation, the business earns a profit of \$75,000. If the individual had stayed at...

Income Approach FormulaIncome Approach Formula

Finance Formulas / August 5, 2018 / Kenley Hopper

The balance sheet is a complex display of this equation, showing that the total assets of a company are equal to the total of liabilities and shareholder equity, or said...

Annual Growth Rate FormulaAnnual Growth Rate Formula

Finance Formulas / August 5, 2018 / Alia Marquez

Compound interest is calculated by multiplying the principal amount by one plus the annual interest rate raised to the number of compound periods minus one.The total initial amount of the...

Solvency Ratio FormulaSolvency Ratio Formula

Finance Formulas / August 4, 2018 / Alia Marquez

The tier 1 capital ratio is the basis for the Basel III international capital and liquidity standards devised after the financial crisis, in 2010. The crisis showed that many banks...

Contribution Margin Per Unit FormulaContribution Margin Per Unit Formula

Finance Formulas / August 5, 2018 / Briana Leonard

The main thing to understand in managerial accounting is the difference between revenues and profits. Not all revenues result in profits for the company. Many products cost more to make...

Break Even Point FormulaBreak Even Point Formula

Finance Formulas / August 5, 2018 / Avalynn Orr

Present value is the discounted sum of future cash flows each future cash flow is multiplied by a carefully selected number less than one, before being added together. The multiplication...

Inventory Cost FormulaInventory Cost Formula

Finance Formulas / August 5, 2018 / Alia Marquez

This ratio measures the financial leverage of a company. Companies with higher levels of liabilities compared with assets are considered highly leveraged and more risky for lenders....

Retail Markup FormulaRetail Markup Formula

Finance Formulas / August 5, 2018 / Aniyah Booth

Economic profit includes the opportunity costs a company loses or gains by making a decision to pursue one avenue towards revenue, thus passing by a different opportunity which also might...

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