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compund interest tables

compund interest tables - Compound Interest...

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Compound Interest Tables (Spreadsheet format developed by V. Dean Adams, University of Nevada Reno) Single Payment: Uniform Payment Series: Arithmetic Gradient Series: Nomenclature and Definitions Non-Annual Compounding A … Factor Name Converts Symbol Formula to F given P (F/P, i%, n) B … Benefit to P given F (P/F, i%, n) BV … Book value (n is the number of years) to A given F (A/F, i%, n) C … Cost to A given P (A/P, i%, n) d … to F given A (F/A, i%, n) Depreciation in year j to P given A (P/A, i%, n) F … to P given G (P/G, i%, n) f … to F given G (F/G, i%, n) G … to A given G (A/G, i%, n) i … j … at time j m … n … at time n n … ** … P/G = (F/G)/(F/P) = (P/A)x(A/G) P … F/G = (F/A – n)/i = (F/A)x(A/G) r … Nominal annual interest rate A/G = [1 – n(A/F)]/i Values of Interest Factors When N Equals Infinity ( F/P , i , ∞) = ∞ ( A/F , i , ∞) = 0 ( P/F , i , ∞) = 0 ( A/P , i ,∞) = i ( F/A , i , ∞) = ∞ ( P/A , i , ∞) = 1/ i ( A/G , i , ∞) = 1/ i ( P/G , i , ∞) = 1/ i 2 Uniform amount per interest period Single Payment Compound Amount (1 + i) n Discount Factors for Continuous Compounding Single Payment Present Worth (1 + i) -n Uniform Series Sinking Fund (F/P, r%, n) = e r n Uniform Series Capitol Recovery Combined interest rate per interest period (P/F, r%, n) = e -r n Uniform Series Compound Amount D j Uniform Series Present Worth Future worth, value or amount Uniform Gradient** Present Worth General inflation rate per interest period Uniform Gradient Future Worth Uniform gradient amount per interest period Uniform Gradient †† Uniform Series Interest rate per interest period Subscripts i e Annual effective interest rate Number of compounding periods per year BOOK VALUE Number of compounding periods; of the expected life of an asset BV = initial cost – Σ D j Present worth, value or amount †† S n Expected salvage value in year n ] 1 i) [(1 i n - + ] 1 i) [(1 i) i(1 n n - + + i ] 1 i) [(1 n - + n n i) i(1 ] 1 i) [(1 + - + n n 2 n i) i(1 n i) 1 ( i ] 1 i) [(1 + - + - + i n i ] 1 i) [(1 2 n - - + ] 1 i) [(1 n i 1 n - + - 1 m r 1 i m e - + = 1 e 1 e n) r%, (A/F, n r r - - = 1 e 1 e n) r%, (F/A, r n r - - = n r - r e - 1 1 e n) r%, (A/P, - = 1 e e - 1 n) r%, (P/A, r n -r - =

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DEPRECIATION INFLATION Straight Line d = i + f + (i x f) BENEFIT-COST-RATIO CAPITALIZED COSTS Capitalized costs are present worth values using an assumed perpetual period of time. B – C ≥ 0, or B/C ≥ 1 Capitalized Costs BONDS RATE-OF-RETURN BREAK-EVEN ANALYSIS To account for inflation, the dollars are deflated by the general inflation rate per interest period f, and then they are shifted over the time scale using the interest rate per interest period i. Use a combined interest rate per interest period d for computing present worth values P and Net P. The formula for d is In a benefit-cost analysis, the benefits B of a project should exceed the estimated costs C. Bond Value equals the present worth of the payments the purchaser (or holder of
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compund interest tables - Compound Interest...

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