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PFET Formulas

All the Formuli mentioned in CCBC's PFET class

NameFormula
Rule of 72 (years until prices double) = 72 / rate of inflation
Rule of 72 (years until money in savings will double) = 72/rate of inflation
Total Interest = amount in savings * annual interest rate * years saved
Future Value = PV(1+I)^n
Future Value (annuity) = annuity * ((1+i)^n-1)/i
Debt Ratio Liabilities / Net Worth The lower the better
Current Ratio Liquefied Assets / Current Liabilities The higher the better
Liquidity Ratio Assets / Monethly expenses months expenses can be paid w/o income
Debt-Payment Ratio Monthly Credit / Take Home pay Percent of monthly income that goes to debts
Savings Ratio $ Saved per Month / Gross Income recommended 5-10%
Created by: Lily_loves_u
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