Engineering Economy

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]

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]

Compound Amount - Symbol (F/A, i%, n)

Converts to a future value - F - given a uniform amount - A - per interest ??????

F = A [( (1 + i)ⁿ -1 ) / i ]

Sinking Fund - Symbol (A/F, i%, n)

Converts to a uniform amount - A - per interest period a given specific future value - ?

A = F [i/((1 + i)ⁿ - 1)]

Present Worth - Symbol (P/A, i%, n)

Converts a uniform amount - A - per interest period to a present value - ?

P = A [((1 + i)ⁿ - 1) / ( i (1+i)ⁿ )]

Capital Recovery - Symbol (A/P, i%, n)

Converts a present value - P - to a uniform amount - A - per interest ??????

A = P [(i (1 + i)ⁿ) / ((1+i)ⁿ - 1)]

Some notation
• i = the interest rate per period
• n = the number of compounding periods
• P = a present (earlier) sum of money
• F = a future (later) sum of money
• A = a uniform series of payments
• G = a linearly increasing series of payments