e” – where Finance meets Science

Many of you would know I am  a trained accountant.  Most would not know that my original training was in science and engineering.  It’s that aspect of my life the I would like to write about now.

All of you would however be familiar with the concept of interest rates.  A nightly topic on the news, interest rates determine how much spare cash we have after the mortgage payment.  And the total mortgage paid is a simple calculation.  To save time, I’m going to skip the math…  but the formula is:

FV = PV(1+r)^t

Where:

FV = Future value

PV = Present Value

r  =  Interest Rate

t  = time

its the formula for calculating the total amount you pay – and, (just like me), its not very sexy!

The Cool Thing though, is if you have a greedy banker!!

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