Financial Forms
This page provides access to forms for computing the financial
formulas described in the book:
YOU CAN DO THE MATH
Overcome Your Math Phobia and Make Better Financial
Decisions
by Ron Lipsman
You may access the most popular
and oft-used formulas, alphabetically according
to their name. Alternatively, you may find all the forms promised in
the book according to the
chapter in which they appear. In the latter case, each form gives
the actual formula that is used. You only need to
enter your data; the form will perform the appropriate computation for
you and return the result of evaluating the formula using your
data. All of these forms are contained in one comprehensive financial calculator that you can browse through.
You can access several mathematical demonstrations and special
features promised in the book by clicking
here.
Finally, you can order the book or obtain more detailed
information about the book's contents by clicking on the book cover
in the upper right.
Alphabetical List of the Most Commonly Used Forms
Chapter List of Forms
- Saving for a College Education
- Lump Sum Deposit Account -- Final Value
- Simple Annual Interest Compute value of an account into which D dollars has been deposited at a simple annual interest rate r for n years.
- Daily Compounded Interest Compute value of an account into which D dollars has been deposited at a daily compounded interest rate r for n years.
- Lump Sum Account -- Target Value
- Simple Annual
Interest Compute amount that must be deposited into an
account in order to accumulate V dollars in n
years at a simple annual interest rate r.
- Daily Compounded Interest Compute amount that must be deposited into an
account in order to accumulate V dollars in n
years at an interest rate r, compounded daily.
- Investing for a College Education
- Regular Deposit Account -- Final Value
- Annual
Deposit, Simple Annual Interest Compute value of an account
into which D dollars is deposited annually, growing at a
simple annual interest rate r for n years.
- Annual
Deposit, Daily Compounded Interest Compute value of an account
into which D dollars is deposited annually, growing at a
daily compounded interest rate r for n years.
- Monthly
Deposit, Daily Compounded Interest Compute value of an account
into which D dollars is deposited monthly, growing at a
daily compounded interest rate r for n years.
- Biweekly
Deposit, Daily Compounded Interest Compute value of an account
into which D dollars is deposited biweekly, growing at a
daily compounded interest rate r for n years.
- Weekly
Deposit, Daily Compounded Interest Compute value of an account
into which D dollars is deposited weekly, growing at a
daily compounded interest rate r for n years.
- Regular Deposit Account -- Target Value
- Taking into Consideration Taxes and Inflation
- Inflating Prices Compute the
price of an item whose initial price P0 is subject
to an inflation rate of r for n years.
- After-Tax Rate of
return Compute the after-tax rate of return when the stated return rate is
r (in decimal form) and the income tax bracket is b (in percent)
- Effect of Taxes on a Simple
Annual Interest Account Compute the tax-reduced value of an
account into which D dollars has been deposited, at a simple
annual interest rate r, for n years, subject to a
marginal tax bracket b.
- Tax-Deferred Accounts Can Help
- Taxable versus Tax-Deferred;
Simplest Model Compute and compare the values in two accounts: in
the second, a regular annual deposit is made, the interest minus the tax
due remains and accumulates in the account; in the first, a regular
annual deposit is made and the tax-deferred interest remains to
accumulate in the account. In both accounts, D is the amount
deposited, r is the interest rate, n is the number of
years, and in the second account b is the marginal tax rate,
leading to an effective interest rate of rb as in
item 3 above. .
- Taxable versus Tax-Deferred;
Complex Model Compute and compare the values in two accounts: in
both accounts, D is the annual amount of money available;
however, in the second account, taxes are paid on it before investment,
and taxes are paid on the interest; whereas in the first account,
taxes are paid on both the principal and interest at the end of the
investment period. As usual, r is the interest rate, n
is the number of years, and b is the marginal tax rate.
- Your First Job: What is Your Salary Worth
- Freedom Quotient Compute
the freedom quotient, that is, the quotient of your after-tax income
divided by your gross income.
- Buying a House or Car: Mortgages and Loans
- Loan Payment Compute the
monthly payment P on a loan of B dollars, at an interest
rate r for n months.
- Loan Amount Compute the
amount B of a loan that a monthly payment P will
support, if the interest rate is r, and the loan period is
n months.
- Magic Number Compute the
magic number on a loan with interest rate r and loan period of n months.
- Total Payments Compute
the total payments on a loan of B dollars, at an interest
rate r for n months.
- Total Interest Compute
the total interest paid on a loan of B dollars, at an interest
rate r for n months.
- Buying or Leasing Your Car
- Lease Payment Compute
the monthly lease payment on a standard car lease, where the cap cost
is C, the residual value is R, the money factor
is M, and the number of months is n.
- Owning or Renting Your Home
No forms for this chapter; Click here
if you need an arithmetic calculator.
- Insurance
No forms for this chapter; Click here
if you need an arithmetic calculator.
- Cut up those #$%^& Credit Cards
- Credit Card Interest
Compute the monthly interest charge on a balance of B dollars
if your credit card company charges an annual interest rate r.
- Gambling: Can I Win the Lottery
No forms for this chapter; Click here
if you need an arithmetic calculator.
- The Stock Market and Other Investments
- Escalating Investment
Program Compute the balance in an investment account into which
D dollars is invested in the first year, the account has a
return rate of r, and the amount invested annually is escalated
at the rate s.
- Magic Number for an
Escalating Investment Account. Compute the magic number for an
escalating investment account whose return rate is r and
escalation rate (of investment) is s.
- Retirement
- Discounting inflation
- How Long Will Your
Money Last Compute how many years your nest egg will last if you
have an annual shortfall of S dollars, your nest egg is
E dollars, and your return rate is r.
- How Much You can
Spend Compute how much you can spend annually from a nest egg of
size E, returning interest at a rate r, if you expect
it to last n years.
- Accounting for inflation
- How Long Will Your
Money Last Compute how many years your nest egg will last if you
have an annual shortfall of S dollars, your nest egg is
E dollars, your return rate is r, and the rate of
inflation is s
- How Much You can
Spend Compute how much you can spend annually from a nest egg of
size E, returning interest at a rate r, subject to an
inflation rate s, if you expect it to last n years.
Mathematical Demonstrations and Special
Features