Dr.

Antonio Nieto - Penn State

Dr. Antonio Nieto - Penn State

1
i= Amount accumulated / unit time
Dr. Antonio Nieto - Penn State

Dr. Antonio Nieto - Penn State

2
 Dr. Antonio Nieto - Penn State

P(1+i)N = Capital Growth

100.00(1+0.03)3 = $109.27

Dr. Antonio Nieto - Penn State

3
Compounding:
Calculating an
equivalent amount
of money in the
future, given some
amount of money
in the present
Dr. Antonio Nieto - Penn State

Dr. Antonio Nieto - Penn State

4
 Dr. Antonio Nieto - Penn State

Discounting:
Calculating an
equivalent amount
of money in the
present, given
some amount of
money in the
future
Dr. Antonio Nieto - Penn State

5
Dr. Antonio Nieto - Penn State

Dr. Antonio Nieto - Penn State

6
Dr. Antonio Nieto - Penn State

Dr. Antonio Nieto - Penn State

7
Dr. Antonio Nieto - Penn State

Dr. Antonio Nieto - Penn State

8
Dr. Antonio Nieto - Penn State