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compound_interest_factors [2013/10/16 17:16] 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) \\ | ||
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