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Unformatted text preview: 1 Ch 4 More Interest Formulas 2 Objectives • Solve problems modeled by uniform series compound formulas • Use arithmetic gradients to solve appropriately modeled problems • Apply nominal and effective interest rates • Use discrete compounding in appropriate contexts 3 Uniform Series Compound Interest Formulas • Uniform series of revenues or expenses occur often (e.g. loan repayments, salary deposits) • Define A = end of period cash receipt of expenditure in a uniform series, continuing for n periods, the entire series equivalent to P or F at interest rate i 4 Sample Uniform Series 5 Uniform Series Compound Interest Formulas (cont.) • Find F when A is given: ) , , / ( 1 ) 1 ( n i A F A i i A F n ! " # $ % & ’ ( ) ! ( F/A,i,n ) = Uniform Series Compound Amount Factor 6 Uniform Series Compound Interest Formulas (cont.) • Find A if F is given: ) , , / ( 1 ) 1 ( n i F A F i i F A n !...
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- Fall '11
- Interest Rates, #, uniform series