Wednesday, October 17, 2012

RELATIONSHIPS BETWEEN COMPOUND INTEREST FACTORS.

From the derivations, we see there are several simple relationships between the compound interest factors.

They are summarized here.

Single Payment

Uniform Series


The uniform series present worth factor is simply the sum of the n terms of the single payment present worth factor


For example:


The uniform series compound amount factor equals 1 plus the sum of  (n - 1) terms of the single payment compound amount factor

For example,


The uniform series capital recovery factor equals the uniform series sinking fund factor plus i:

For example,

 This may be proved as follows:



No comments:

Post a Comment