INTEREST FORMULAS FOR CONTINUOUS COMPOUNDING To Find: For single cash flows: F P Given: Factor

P F

e rN e rN

For uniform series (annuities):

F P A A A A F P

e rN 1 er 1 e rN 1 e rN (e r 1) er 1 e rN 1 e rN (e r 1) e rN 1

INTEREST FORMULAS FOR GEOMETRIC GRADIENT SERIES

A1[1 (1 + i ) N (1 + f ) N ] A1[1 ( P/F , i %, N )( F/P, f %, N )] P= = , i f i f where f i is the average rate of increase or decrease in the projected cash flow each period and

A1 is the initial value of the series. Alternatively, define a convenience rate, iCR =
present value of the series is then found by computing P =

i f . The 1+ f

A1 ( P/A, iCR , N ). 1+ f