“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
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!!