CIF is used for 'COMPOUND INTEREST FUNCTIONS' in these notes. The CIF are the six usual variations of the end of discrete period, fixed rate, compound interest model used by the financial community. Also included are NPV, Net Present Value, IRR, Internal Rate of Return, and EPC, Equivalent Period Cost.
The base model is:
The three standard factors and their inverses are:
Various versions of these functions are found in the TVX workspace, and the function 'f' file. Some of related LESSONS are listed in Links below:
The CIF panel is useful for Time Value Calculations that require
one or more Compound Interest Functions. It is especially useful for
that require two or more functions to achieve a final result. Most problems
that require only one Compound Interest Fn. can be solved using a line
from the ICIF (interactive compound interest functions) panel. If you
wish to use the browser enabled functions click on
the Link below:
Go to the Interactive Compound Interest Functions F/P, P/F, A/P, A/F, P/A, F/A.
Problems that require the use of a number of functions can be solved by ACCUMULATING the various parts to an equivalent Present Value (P) and then CONVERTING to other EQUIVALENTS such as an annuity (A) or Future Value (F).
Note that each procedure that calculates P prompts for a starting value of P. The additional P is summed to the initial value. Usually at the start of a problem P=0 is appropriate, i.e. the initial value is zero. You are also prompted for current values of F and A. These can be set to 0, or remain as the current value and the functions will add additional amounts.
The CIF example in the MYSYS MENU illustrates the technique for finding equivalent annuity for a first cost, a series of recurring costs, and a salvage value for a piece of equipment. The use of the LGSCN feature is discussed.
End to date, ams 990712