ENGINEERING ECONOMICS AND COST ANALYSIS FORMULAE

Simple Interest F = ) N i 1 ( P

Compound Interest F =
N
) i 1 ( P

Single Payment Compound Amount
F =
N
) i 1 ( P ) N , i , P / F ( P

Single Payment Present Worth Amount
P =
N
) i 1 (
F

) N i , F / P ( F

Equal Payment Series Compound Amount
F =

i
1 ) i 1 (
A
N
) N , i , A / F ( A

Equal Payment Series Sinking Amount
A =

1 ) i 1 (
i
F
N
) N , i , F / A ( F

Equal Payment Series Present Worth Amount
P =

N
N
) i 1 ( i
1 ) i 1 (
A ) N , i , A / P ( A

Equal Payment Series Capital Recovery Amount
A =

1 ) i 1 (
) i 1 ( i
P
N
N
) N , i , P / A ( P

Uniform Gradient Series Annual Equivalent Amount
A =

] 1 ) i 1 [( i
1 N i ) i 1 (
G A
N
N
1

= ) N , i , G / A ( G A
1

Effective Interest Rate
R = 1 ) C / i 1 (
C



C = Number of Interest Period in a year
F =
N
) R 1 ( P