Knowledge Base & Methodology

Calculation Standards & Formulas

At VolexTool, we do not treat mathematical engines as black boxes. This resource repository documents the exact formulas, compounding intervals, and assumptions governing our tools.

Financial Engineering

Standard Amortization Formula & Compounding Frequency

The monthly mortgage payment for a fixed-rate loan is derived from the standard annuity formula:

M = P × [ r(1 + r)^n ] / [ (1 + r)^n - 1 ]

M: Total periodic payment (Principal + Interest)

P: Principal loan balance

r: Periodic interest rate (Annual interest rate divided by periods per year)

n: Total number of payment periods over the life of the loan

Jurisdictional Difference: In the United States, monthly compounding is the standard convention. In Canada, statutory requirements under the Bank Act mandate semi-annual compounding for residential fixed mortgages, resulting in an effective periodic rate calculation: r = (1 + i/2)^(2/12) - 1.

Health Metrics

Body Mass Index (BMI) & Quetelet Index Formulation

BMI is a screening metric established by the World Health Organization (WHO) to classify weight relative to height:

Metric: BMI = weight (kg) / [height (m)]²
Imperial: BMI = 703 × weight (lbs) / [height (in)]²

Underweight: < 18.5

Normal Weight: 18.5 – 24.9

Overweight: 25.0 – 29.9

Obesity Class I: 30.0 – 34.9

Obesity Class II: 35.0 – 39.9

Obesity Class III: ≥ 40.0

Academic Metrics

Grade Point Average (GPA) & Weighted Credit Calculations

Cumulative Grade Point Average is computed by weighting the grade points earned in each course by its corresponding credit value:

GPA = Σ (Grade Points × Credit Hours) / Σ (Credit Hours)

Weighted GPA models grant additional weight (e.g. +0.5 for Honors courses, +1.0 for AP/IB collegiate courses) to reflect academic rigor.