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--- compound_interest_factors [2012/07/09 19:31]
128.192.48.132
+++ compound_interest_factors [2013/10/16 17:18] (current)
ddrummond
@@ Line 46: / Line 46: @@
 |14.300      |189.464   |         |90      |           |           |            |
 |16.578      |253.546   |         |95      |           |           |            |
 |19.218      |339.302   |         |100     |           |           |            |
+====Compound-Interest Formulas====
+. End Value of Initial sum after n years: V<sub>n</sub> = V<sub>o</sub>(1+r)<sup>n</sup> \\
+. Initial value of end value: V<sub>o</sub> = V<sub>n</sub>/(1+r)<sup>n</sup> \\
+. Rate of interest earned on sum: r=100[(V<sub>n</sub>/V<sub>o</sub>)<sup>1/n</sup>-1] \\
+. Amount of interest earned: R<sub>n</sub> = V<sub>o</sub>[(1+r)<sup>n</sup>-1]\\
+. Initial value of a perpetual annual payment: V<sub>o</sub> = a + a/r\\
+. Initial value of terminal series of annual payments: V<sub>o</sub> = a + a/r [((1+r)<sup>n</sup>-1)/(1+r)<sup>n</sup>]\\
+. End value of terminal series of annual payments: V<sub>n</sub> = a[(1+r)<sup>n</sup>-1] / r\\
+. Present worth of land: Present Worth = Net value at end of rotation/((1+r)<sup>t</sup>-1) \\
+====Legend====
+V<sub>n</sub> = end value\\
+r = rate of interest\\
+V<sub>o</sub> = initial value\\
+R<sub>n</sub> = amount of interest ($)\\
+n = number of years\\
+a = annual payment\\
+t = length of rotation\\

Service Forester's Handbook