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Compound Interest Formulas
i is the interest or discount rate (decimal fraction) per accounting
n is the number of accounting periods from 0, there may be several
P is a Present Value at time 0, may be positive or negative.
F is a Future Value at a time n, may be positive or negative.
A is a uniform amount per period for n periods, may be positive
- Single Payment - Compound Amount Formula,
(F/P, i, n)
F/P = (1 + i) n
Single Payment - Present Value (Worth) Formula,
(P/F, i, n)
P/F = (1 + i) -n
Sinking Fund Formula, (A/F, i, n)
A/F = i / (1 + i) n - 1
Capital Recovery Formula, (A/P, i, n)
A/P = (i (1 + i) n ) / ((1 + i) n - 1)
Uniform Series - Compound Amount Formula,
(F/A, i, n)
F/A = ((1 + i) n -1) / i
Uniform Series - Present Worth Formula,
(P/A, i, n)
P/A = ((1 + i) n -1) / (i (1 + i) n )