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TABLE 2.6 Summary of Discrete Compounding Interest Factors. To Find

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Karim Hakim
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49 views2 pages

TABLE 2.6 Summary of Discrete Compounding Interest Factors. To Find

Uploaded by

Karim Hakim
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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P

¿ move one time unit forward → P' =P ( 1+i ) ¿ move one time unit backward → P' =
1+i
Simple Interest → I =P ×i Fn =P+ I n I n=P× i× n F n=P ( 1+¿ )

TABLE 2.6
Summary of Discrete Compounding Interest Factors.
To Find Given Factor Symbol Name
P F ( 1+i ) −n
( P∨F i% ,n) Single sum, present worth factor
n
F P ( 1+i ) ( F∨P i% ,n) Single sum, compound amount factor
n
( 1+i ) −1
P A n ( P∨ A i % , n) Uniform series, present worth factor
i (1+i )
i (1+i )n
A P n ( A∨Pi % , n) Uniform series, capital recovery factor
( 1+i ) −1
( 1+i )n −1
F A ( F∨ A i% , n) Uniform series, compound amount factor
i
i
A F ( A∨F i% , n) Uniform series, sinking fund factor
( 1+i )n −1
1−( 1+¿ ) ( 1+ i )−n
P G ( P∨G i % , n) Gradient series, present worth factor
i2
( 1+i )n −( 1+ ¿ )
F G ( F∨G i% ,n) Gradient series, future worth factor
i2
( 1+i )n −(1+¿)
A G ( A∨Gi % , n) Gradient to uniform series conversion factor
i[ (1+i )n−1]
1−( 1+ j )n ( 1+ i )−n
P A1,j for i≠ j ( P∨ A 1 i % , j % , n) Geometric series, present worth factor
i− j
n
P A1,j for i= j - Geometric series, present worth factor
(1+i)
( 1+i )n −( 1+ j )n
F A1,j for i≠ j ( F∨ A1 i % , j % , n) Geometric series, future worth factor
i− j
n−1
F A1,j n ( 1+i ) for i= j - Geometric series, future worth factor

Nominal annual interest rate(r ) r


Period Interest rate (i )= →i=
Number of interest periods per year (m) m
r m
( )
i eff = 1+
m
m
−1∨(1+i ) −1

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