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Formulas Exam

This document contains formulas for various engineering economic conversion factors used to calculate present and future values over uniform and non-uniform cash flows including the single sum, uniform series, capital recovery, sinking fund, gradient series, and geometric series factors as well as the effective interest rate formula.
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0% found this document useful (0 votes)
43 views1 page

Formulas Exam

This document contains formulas for various engineering economic conversion factors used to calculate present and future values over uniform and non-uniform cash flows including the single sum, uniform series, capital recovery, sinking fund, gradient series, and geometric series factors as well as the effective interest rate formula.
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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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

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