The Math behind formulas on level 1

CFA Level I
#1

Hello everyone, I was hoping to get some clarity on the math behind some of these formulas. I never had the best education in math and was hoping I can get a book recommendation or course for the basics. At the moment, I’m just plugging in these formulas on my BA calculator and not knowing why and how the formula help us get the answer. Any help would be apperciated.

For instance:
FV=PV*(1+R)
PV=FV/(1+R)

Edit: I’m also wondering how to set up problems arithmetically. Why Pv and fv are in the numerator instead of denominator, same for ratios.

#2
FV = PV \times \left(1 + r\right)
1 Like
#3

Thanks for this updated can’t believe I made that mistake. I did memorize fv is * and pv* is division, but wanted to know why this works.

#4

Time Value of Money Explained with Formula and Examples.

The above has very simple examples of your formulas above. Any college level business math text should have a section on time value of money. I’ve even seen it in high school math texts.