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compound_interest_factors
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compound_interest_factors [2013/10/16 17:15] ddrummond |
compound_interest_factors [2013/10/16 17:18] (current) ddrummond |
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| 4. Amount of interest earned: R<sub>n</sub> = V<sub>o</sub>[(1+r)<sup>n</sup>-1]\\ | 4. Amount of interest earned: R<sub>n</sub> = V<sub>o</sub>[(1+r)<sup>n</sup>-1]\\ | ||
| 5. Initial value of a perpetual annual payment: V<sub>o</sub> = a + a/r\\ | 5. Initial value of a perpetual annual payment: V<sub>o</sub> = a + a/r\\ | ||
| - | 6. Initial value of terminable series of annual payments: V<sub>o</sub> = a + a/r [((1+r)<sup>n</sup>-1)/(1+r)<sup>n</sup>]\\ | + | 6. 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>]\\ |
| - | 7. End value of terminable series of annual payments: V<sub>n</sub>[(1+r)<sup>n</sup>-1]\\ | + | 7. End value of terminal series of annual payments: V<sub>n</sub> = a[(1+r)<sup>n</sup>-1] / r\\ |
| 8. Present worth of land: Present Worth = Net value at end of rotation/((1+r)<sup>t</sup>-1) \\ | 8. Present worth of land: Present Worth = Net value at end of rotation/((1+r)<sup>t</sup>-1) \\ | ||
| ====Legend==== | ====Legend==== | ||
| - | V<sub>n</sub> = end value | + | V<sub>n</sub> = end value\\ |
| - | r = rate of interest | + | r = rate of interest\\ |
| - | V<sub>o</sub> = initial value | + | V<sub>o</sub> = initial value\\ |
| - | R<sub>n</sub> = amount of interest ($) | + | R<sub>n</sub> = amount of interest ($)\\ |
| - | n = number of years | + | n = number of years\\ |
| - | a = annual payment | + | a = annual payment\\ |
| - | t = length of rotation | + | t = length of rotation\\ |
compound_interest_factors.1381943750.txt.gz · Last modified: 2013/10/16 17:15 by ddrummond
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