MODIFIED FORMULAS OF SIX FUNCTIONS COMPOUND INTEREST IN VALUATION ACTIVITIES

Mochulaev Valeriy Evgenevich
Institute for Advanced Studies "Conversion" - Graduate school of business
Russia, Yaroslavl, candidate of economic science, associate professor

Abstract
The article is devoted to the improvement of the formulas of six functions of a compound interest used in the theory and practice of appraisal activity. The problems associated with the implementation of the total basic formula of a compound interest were identified when introducing the percentage rate and the number of periods into it. It is proposed to introduce into the general basic formula the indicator “Frequency of interest” for modifying the interest rate and the number of periods, so that the rules of mathematics are observed in the general formula of a compound interest. Based on the modified basic formula of a compound interest, modified formulas of six functions of a complex percentage are presented. The legality of the modified formulas of six functions of a compound interest with numerical examples is checked.

Keywords: compound interest formulas, interest rate, math rules, modified interest rate, number of periods, valuation activities


Article reference:
Mochulaev V.E. Modified formulas of six functions compound interest in valuation activities // Economics and innovations management. 2022. № 9 [Electronic journal]. URL: https://ekonomika.snauka.ru/en/2022/09/23733

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