# When tables are available for 2a - 4c, it is recommended that you use them instead of evaluating the formulas.

Form.
nr.

Short
name

1a

F/P

Paramaters, example

Numerical
results

i

1.403

F

P
100

0.07

N
5

F
F = P(1 + i )

140

N

Convert a single amount at time 0 to a single amount at time N.

1b

P/F

F

P

140

i

N

0.7130

0.07

5

100

Cash flow diagram, equivalent
flow shown in dashed line

Interest factor formula

0

P = F(1 + i )-N

1

...

2

N

P

Convert a single amount at time N to a single amount at time 0.

2a

F/A

F

A

i

N

12.58

100

0.05

10

1258

F=

A [(1 + i )N - 1]
i

Convert a uniform series from time 1 to time N to a single amount at time N.
The last A element coincides with F.

2b

A/F

F

A

1258

i

N

0.07950

0.05

10

100

F

0

1

2

3

...

N

2

3

...

N

Fi

A=

A

(1 + i )N - 1

Convert a single value at time N to a uniform series from time 1 to time N.
The last A element coincides with F.

3a

P/A

P

A

i

N

9.7791

25

0.1

40

244

P=

A [(1 + i )N - 1]

Convert a uniform series from time 1 to time N to a single amount at time 0.
P occurs 1 period before the first A element

3b

A/P

P

A

1000

P

i (1 + i )N

i

N

0.18744

0.1

8

187

A=

0

1

P [i (1 + i )N]
A

(1 + i )N - 1

Convert a single amount at time 0 to a uniform series from time 1 to time N.
P occurs 1 period before the first A element.

4a

F/G

F

G

i

N

167.7

50

0.1

15

8386

F=

F

G [(1 + i )N -i N - 1]
i

0

1

2

2

3

...

G

Convert a linear gradient from time 1 to time N to a single value at time N.
The first G element occurs at time 2. Equal to (A/G,i ,N)(F/A,i ,N).

2G
P

4b

P/G

P

G

i

N

43.81

50

0.09

15

2190

P=

N

(N-1)G

N

G [(1 + i ) -i N - 1]
i 2(1 + i )N

0

1

2

3

...

N

Convert a linear gradient from time 1 to time N to a single value at time 0.
The first G element occurs at time 2. Equal to (A/G,i ,N)(P/A,i ,N).

4c

A/G

A

G
50

i
0.09

N

5.435

15

A=

G [(1 + i )N -i N - 1]
N

i (1 + i ) - i

272

0

Convert a linear gradient from time 1 to time N to a uniform series from time 1 to time N.
The first G element occurs at time 2. The (N-1) elements convert to N elements.

5a

F/g,i

F

A1

i

N

g

65.56

1

0.1

14

0.15

66

F=

1

2

3

...

N

A

A1 [(1 + i )N - (1 + g)N]

F

P

i -g

convert to P or F

Convert a geometric gradient from time 1 to time N to a single value at time N.

i

N

g

9.031

100

0.12

20

0.03

903

P=

A1 [1 - (1 + g)N(1 + i ) - N]
i -g

Convert a geometric gradient from time 1 to time N to a single value at time 0.
Use (NA1)/(1+i ) when i = g.

Interest factor formulas

...

etc.

A1

3

2

P

2

A1(1+g)

P/g,i

1
A1

5b

0

A1(1+g)

Use (NA1)(1+i )N-1 when i = g.

InterestFactors_Sep2005.xls

N