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PFET Formulas
All the Formuli mentioned in CCBC's PFET class
Name | Formula |
---|---|
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% |