Discrete Compounding Formulas
Discrete compounding formulas with discrete payments
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Single Payment
Compound Amount - Symbol (F/P, i%, n)
Converts to a future value - F - given a present single payment or value - P - today.
F = P [(1 + i)n] (1)
where
F = future value
P = single payment today
i = interest rate per period
n = number of periods

Compound Amount - Online Calculator
Present Worth - Symbol (P/F, i%, n)
Converts to a present value - P - given a future payment or value - F.
P = F [(1 + i)-n] (2)
where
P = present value
F = single future payment
i = discount rate per period
n = number of periods

Present Value - Online Calculator
Uniform Series
Compound Amount - Symbol (F/A, i%, n)
Converts to a future value - F - given a uniform amount, annuity - A - per interest period
F = A [( (1 + i)n -1 ) / i ] (3)
where
F = future value
A = uniform amount per period
i = interest rate
n = numbers of periods

Compound Amount - Online Calculator
Sinking Fund - Symbol (A/F, i%, n)
Converts to a uniform amount, annuity - A - per interest period a given specific future value - F
A = F [i/((1 + i)n - 1)] (4)
where
A = uniform amount per period
F = future value
i = interest rate
n = number of periods

Sinking Fund - Online Calculator
Present Worth - Symbol (P/A, i%, n)
Converts a uniform amount, annuity - A - per interest period to a present value - P
P = A [((1 + i)n - 1) / ( i (1+i)n )] (5)
where
P = present value
A = amount per interest period
i = discount rate
n = discount periods

Present Worth or Value - Online Calculator
Capital Recovery - Symbol (A/P, i%, n)
Converts a present value - P - to a uniform amount, annuity - A - per interest period
A = P [(i (1 + i)n) / ((1+i)n - 1)] (6)
where
P = present value
A = amount per interest period
i = interest rate
n = discount periods

Capital Recovery - Online Calculator
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Related Topics
- Economics - Engineering economic concepts - cash flow diagrams, discount rate, internal rate of return - IRR, income taxes, inflation
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Related Documents
- Cash Flow Diagrams - Time and value of future money
- Discount Rate - The Present Value of future money
- Interest Formulas - Single cash flow formulas
- Interest Rate - The cost of money
- Internal Rate of Return - IRR - Internal Rate of Return - IRR - the project break-even interest rate
- Net Present Worth - NPW - of a Stream of Payments - Net Present Worth - NPW - or Value of a stream of payments





