ECO 1192 Chapter Notes - Chapter 3: Mansfield, First Air Force, Howlong
Document Summary
Compound amount factor (f/p, i,n): gives the future amount that is equivalent to a present amount. ( f /p ,i, n )=(1+i) n i ,n ): indicates present amount that is equivalent to a future amount. Present worth factor (p/f, ( p/ f ,i, n )= 1 (1+i)n. Sinking fund factor (a/f, i, n): indicates the size of a repeated disbursement that is equivalent to a future amount. An account into which regular deposits are made in order to accumulate some amount. ( a / f ,i ,n )= i (1+i)n 1. Unifrom series compound amount factor (f/a,i,n): gives the future value, f, that is equivalent to a series of equal=sized disbursement a. (inverse of sinking fund factor) ( a / f ,i ,n )=(1+i)n+1 i. Capital recovery factor: (a/p, i,n): indicates how much money must be saved over n future periods to recover a capital investment of p today. ( a / f ,i ,n )= i(1+i)n (1+i)n 1.
