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Engineering ToolBox > Discrete Compounding Formulas
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
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
Converts to a future value - F - given a uniform amount - 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
Converts to a uniform amount - 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
Converts a uniform amount - 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
Converts a present value - P - to a uniform amount - A - per interest period
A = P [(i (1 + i)n) / ((1+i)n - 1)] (5)
where
P = present value
A = amount per interest period
i = interest rate
n = discount periods
