1
Event 5 – Equivalence Factors
Lessons 9, 10, and 11
(F/P,
i
,
N
)
Single payment
compound amount
factor
Moves a single payment to
N
periods later
in time
(P/F,
i
,
N
)
Single payment
present worth factor
Moves a single payment to
N
periods earlier
in time
(A/F,
i
,
N
)
Sinking Fund factor
Takes a single payment and spreads into a
uniform series over
N
earlier periods. The
last payment in the series occurs at the same
time as
F.
(F/A,
i
,
N
)
Uniform Series
Compound Amount
factor
Takes a uniform series and moves it to a
single value at the time of the last payment
in the series.
(A/P,
i
,
N
)
Capital Recovery
Factor
Takes a single payment and spreads it into a
uniform series over
N
later periods. The first
payment in the series occurs one period later
than
P.
(P/A,
i
,
N
)
Uniform Series
Present Worth Factor
Takes a uniform series and moves it to a
single payment one period earlier than the
first payment of the series
.
(P/G,
i
,
N
)
Arithmetic Gradient
Present Worth Factor
Takes a arithmetic gradient series and
moves it to a single payment two periods
earlier than the first nonzero payment of the
series.
(A/G,
i
,
N
)
Arithmetic Gradient
to Uniform Series
Factor
Takes a arithmetic gradient series and
converts it to a uniform series. The two
series cover the same interval, but the first
payment of the gradient series is 0.
The TA will play the
Equivalence Factors
movie from Lesson 10 (Equivalence Factors). Find
the solutions to the problems on the next page following the instructions in the movie. The
questions are not answered in order. The movie does not ask about the P/G factor. Use that factor
to answer the remaining question.
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 Spring '10
 BARD
 Time Value Of Money, Interest, Net Present Value, uniform series, single payment

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