Math class may have seemed pointless back in the day, but it turns out all those confusing equations are quite useful.
Math can be used to solve every money problem, from how long it will take to pay off debt to how much one should save for a new home.
We've rounded up 11 math equations that can be used every single day. Write them down, whip out your pencil, and prepare to budget like a genius.
11 Personal Finance Equations You Need To Know
11 Personal Finance Equations Everyone Needs to Know
What it is: Amortization means making periodic payments over time to pay off debt.
How to use it: This equation calculates how much the monthly payment will be on a debt. Rearrange the equation algebraically to show what portion of each monthly payment will go towards interest and toward the principle.
Best for: Calculating the cost of long-term debt like mortgages, car loans, student loans, etc.
What it is: Simple interest is interest earned from principal.
How to use it: This calculation can be done quickly to provide an idea of how much interest will accrue over time. Just remember: This equation ignores the effects of compounding. You'll get an error when you're working with a larger principle and longer stretches of time.
Best for: Getting a rough estimate on what you'll earn in a savings account, or pay on a loan or a credit card.
What it is: The present value of an annuity formula equates the value of a series of payments in the future to a lump sum today by using the time value of money (inflation) -- a dollar today is worth more than a dollar tomorrow.
How to use it: Receiving $100 today is more valuable than having $10 handed to you every year for the next 10 years, because you could invest the $100 today then earn interest on it over the decade.