Engineering Economics Formulas
Formulas for conversion factors
Factor
Symbol
Factor
Single sum, present worth factor
(P/F, i, n)
(1+i)-n
Single sum, future worth factor
(F/P, i, n)
(1+i)n
Uniform series, present worth factor
(P/A, i, n)
Capital recovery factor
(A/P, i, n)
Uniform series, future worth factor
(F/A, i, n)
Sinking fund factor
(A/F, i, n)
Gradient series, present worth factor
(P/G, i, n)
Gradient to uniform series factor
(A/G, i, n)
Geometric series, present worth factor
(P/A, g, i, n)
(1+i)n-1
i(1+i)n
i(1+i)n
(1+i)n-1
(1+i)n-1
i
i
(1+i)n-1
[1-(1+ni)(1+i)-n]
i2
(1+i)n-(1+ni)
i[(1+i)n-1]
[1-(1+g)n(1+i)-n] for ig
i-g
n(1+i)-1 for i=g
Effective interest rate
where:
ieff
= (1+r/m)m 1
r
m
= nominal interest rate
= number of compounding periods per year