Theory of Sets

Union – U
Set of all elements belonging to a group of sets

Intersection - ꓵ
Set of elements that commonly belong to a group of sets

Difference
Set of elements that belong to one set but does not to
another

Complement
Set of elements that do not belong to any group of sets

Union Intersection

Difference Complement
 Quadratic Equation
−𝑏 ± √𝑏2 − 4𝑎𝑐
𝑥=
2𝑎
Discriminant
𝑏 2 − 4𝑎𝑐
k Problems
Use discriminant and equate a, b, and c for the given
condition (1 or 2 solutions)
𝑏 2 − 4𝑎𝑐 = 0 (1 solution)
𝑏 2 − 4𝑎𝑐 > 0 (2 distinct solutions)

Factor Theorem
If (x-r) is a factor of f(x), then r is a root of f(x)=0

Remainder Theorem
If f(x) is divided by (x-r), the remainder is f(r)
Pascal’s Triangle

𝑛!
𝑎𝑟 𝑏 𝑛−𝑟
𝑟!(𝑛−𝑟 )!
Exponents
Age Problems
- Difference in age is always constant
𝑥−𝑦=𝑐
Mixture Problems

Concentration
𝑝
𝐶=
𝑇
Where: p = fractional parts; T = total quantity
𝐶𝑧 = 𝐴𝑥 + 𝐵𝑦 𝐶 =𝐴+𝐵
Clock Problems

Same Angle Opposite Angle

𝑥 𝑥
𝜃+ =𝑥 𝜃 − 180 + =𝑥
12 12
General Angle Angle to Minute Reference Angle
𝑥 𝑥
𝜃±𝛽+ =𝑥 𝑀= 𝜃
12 6
Work Problems
Sum of Unit Work Unit Work
1 1 1 1 1 1 1 1
+ +⋯+ = [ + ] 𝑡𝐴 + [ + ] 𝑡𝐵 = 1
𝑇1 𝑇2 𝑇𝑛 𝑇 𝑡1 𝑡2 𝑡𝑥 𝑡𝑦

Multiple People Work to Single Person Work

𝑇𝑠 = 𝑚𝑇𝑚
(8 people) X (5 days) = (1 person) (? days)
Days = 40 days per person
Digit Problems
2- digit 3- digit
10𝑡 + 𝑢 100ℎ + 10𝑡 + 𝑢
10𝑢 + 𝑡 (reverse) 100𝑢 + 10𝑡 + ℎ (reverse)
Diophantine Problems
- Solution must be an integer
Uniform Motion Problems
𝐷
𝐷 = 𝑉𝑡 𝑡=
𝑉
𝐺𝑀 = 𝑛√𝑎1 𝑎2 … 𝑎𝑛 𝐺𝑀 = √𝑎1 𝑎2

Harmonic Progression
𝐴𝑃 = 𝑎, 𝑎 + 𝑑, 𝑎 + 2𝑑, 𝑎 + 3𝑑
1 1 1 1
𝐻𝑃 = + + +
𝑎 𝑎 + 𝑑 𝑎 + 2𝑑 𝑎 + 3𝑑
1
𝐴𝑃𝑛 = 𝑎 + (𝑛 − 1)𝑑 𝐻𝑃𝑛 =
𝑎+(𝑛−1)𝑑
 TRIANGLE AREAS

𝑎𝑏𝑐
𝐴= 𝐴 = 𝑟𝑠
4𝑟

𝐴 = 𝑟(𝑠 − 𝑎)

1 1
𝐴= 𝑏ℎ 𝐴 = 𝑎𝑏 sin 𝜃
2 2
Prism Truncated Prism

ℎ1 +ℎ2 +ℎ3 +ℎ4 +ℎ5

𝑉 = 𝐴ℎ 𝑉=𝐴
5
Oblique Prism Oblique Cylinder

𝑉 = 𝐴ℎ = 𝐴𝐿 𝐿

Spherical Lune Spherical Wedge

𝜋𝑟 2 𝜃 𝜋𝑟 3 𝜃
𝐴= 𝑉=
90° 270°

Spherical Zone

𝐴 = 2𝜋𝑟ℎ
 Spherical Segment

πh2 πh 2 2)
πh
V= ( )
3r − h = (3a + h = (3a2 + 3b2 + h2 )
3 6 6

Spherical Cone Tetrahedron

1 √2 3
𝑉 = (2𝜋𝑟 2 ℎ) 𝑉= 𝑎
3 12

Spherical Pyramid Triangle formed by Coordinates

𝜋𝑟 3 𝐸 1 𝑋 𝑋3 𝑋2
𝑉= A = 2| 1 |
540 𝑌1 𝑌3 𝑌2
𝐸 = ∑ 𝜃 − (𝑛 − 2) × 180
Circular Geometry Polygon Geometry

Number of Diagonals Interior Angles

𝑛 (𝑛−2)
𝑁𝑑 = 2 (𝑛 − 3) 𝜃𝑒𝑎𝑐ℎ = × 180°
𝑛
Sum of Interior Angles Area of n-side Polygon
° 1 2 180°
∑ 𝜃𝑖𝑛𝑡𝑒𝑟𝑖𝑜𝑟 = (𝑛 − 2) × 180 𝐴 = 4 (𝑛𝑏 cot )
𝑛
Sum of Exterior Angles for any Polygon
∑ 𝜃𝑒𝑥𝑡𝑒𝑟𝑖𝑜𝑟 = 360°
Polygon inscribed in a circle Polygon circumscribed a circle

1 2 360° 2 180°
𝐴 = 2 (𝑛𝑟 sin ) 𝐴 = 𝑛𝑟 tan
𝑛 𝑛
Sector of a Circle Segment of a Circle

1 2 1 2
𝐴= 𝑟 𝜃 𝐴= 𝑟 (𝜃 − sin 𝜃)
2 2
Parallelogram Rhombus

𝐴 = 𝑎𝑏 sin 𝜃 𝐴 = 𝑎2 sin 𝜃
1 1
𝐴 = 𝑑1 𝑑2 sin 𝛽 𝐴 = 𝑑1 𝑑2
2 2
𝐴 = 𝑏𝑎𝑠𝑒 𝑥 ℎ𝑒𝑖𝑔ℎ𝑡

Trapezoid Trapezium

1
𝐴 = (𝑎 + 𝑏)ℎ 𝑨 = √(𝒔 − 𝒂)(𝒔 − 𝒃)(𝒔 − 𝒄)(𝒔 − 𝒅) − 𝒂𝒃𝒄𝒅 (𝐜𝐨𝐬 𝜽)𝟐
2
Where:
𝒂+𝒃+𝒄+𝒅 𝑨+𝑫 𝑩+𝑪
𝑺= 𝜽= =
𝟐 𝟐 𝟐
1
𝐴= 𝑑 𝑑 sin 𝛽
2 1 2

Cyclic Quadrilateral
Locus
- The path of a point which moves in accordance with a given
condition

Conic Section
- Locus of a point which moves so that there exist a constant ration
of its distance from a fixed point (focus) to a fixed line (directrix).

Eccentricity (e)
- Ratio of the distances from the locus to a focus and the
corresponding directrix.

e=1 - parabola
e<1 - ellipse
e -> 0 - circle
e>1 - hyperbola
e=∞ - straight line
 General Equation of a Circle
Ax2 + Ay2 + Dx + Ey + F = 0

General Equation of an Ellipse

Ax2 + Cy2 + Dx + Ey + F = 0
 𝒄 𝟐𝒃𝟐 𝟐 +𝒃𝟐
𝒂
Eccentricity = 𝒂 𝑨 = 𝝅𝒂𝒃 𝑳𝑹 = 𝑷 = 𝟐𝝅√
𝒂 𝟐
𝒂
Directrix = 𝒆

General Equation of a Parabola

Ax2 + Dx + Ey + F = 0 - if opens vertically
Cy2 + Dx + Ey + F = 0 - if opens horizontally
Latus Rectum (LR) = 4p
Eccentricity = 1
 General Equation of a Hyperbola
Ax2 - Cy2 + Dx + Ey + F = 0 - transverse axis is horizontal
Cy2 - Ax2 + Dx + Ey + F = 0 - transverse axis is vertical

Asymptotes Asymptotes
𝑦 − 𝑘 = 𝑚(𝑥 − ℎ) 𝑦 − 𝑘 = 𝑚(𝑥 − ℎ)
𝟐𝒃𝟐 𝒄 𝒂
LR = Eccentricity = 𝒂 Directrix = 𝒆
𝒂
 Exponential Form of Complex Number
𝑧 = 𝑟𝑒 𝑗𝜃
Multiplication - 𝑧1 𝑧2 = 𝑟1 𝑟2 𝑒 𝑗(𝜃1+𝜃2)
𝑧1 𝑟1
Division - = 𝑒 𝑗(𝜃1−𝜃2)
𝑧2 𝑟2

Power - 𝑧 𝑛 = (𝑟 < 𝜃)𝑛 = 𝑟 𝑛 < 𝑛𝜃

L’Hospital’s Rule
0 ±∞
- For limits that have indeterminate form or
0 ±∞

𝑓(𝑥) 𝑓′(𝑥) 𝑓′′(𝑥) 𝑓 𝑛 (𝑥)

lim = lim = lim = ⋯ lim 𝑛
𝑥→𝑎 𝑔(𝑥) 𝑥→𝑎 𝑔′(𝑥) 𝑥→𝑎 𝑔′′(𝑥) 𝑥→𝑎 𝑔 (𝑥)

The Differential
𝑑𝑦 = 𝑓 ′ (𝑥 )𝑑𝑥 ≈ ∆𝑦 = 𝑓′(𝑥)∆𝑥

Radius of Curvature
- Radius of the circle at a point in the tangent to the function.

Maxima and Minima

Change
Point on the Slope
of slope Concavity
curve (y’)
(y’’)

Maximum y’ = 0 negative downward

Minimum y’ = 0 positive upward

Point of
y’ ≠ 0 y’’ = 0
Inflection
 ∫ 𝒖𝒅𝒗 = 𝒖𝒗 − ∫ 𝒗𝒅𝒖

𝑢
∫ sech u du = arcsin (tanh u ) + c ∫ csch 𝑢 𝑑𝑢 = ln (tanh 2 ) + 𝑐
∫ sech u tanh 𝑢 du = − sec 𝑢 + c ∫ csch 𝑢 coth 𝑢 𝑑𝑢 = − csc 𝑢 + 𝑐

𝐴 (𝑢 ) 𝐶 (𝑢 ) 𝐷 (𝑢 )
∫ 𝑑𝑢 = ∫ 𝑑𝑢 + ∫ 𝑑𝑢
𝐵 (𝑢 ) 𝐸 (𝑢 ) 𝐹 (𝑢 )
Where:

E(u) and F(u) are factors of B(u)

𝐴(𝑢) = 𝐶 (𝑢)𝐹(𝑢) + 𝐷(𝑢)𝐸(𝑢)

𝐴 (𝑢 ) 𝐶 (𝑢 ) 𝐷 (𝑢 ) 𝐸(𝑢)
∫ 𝑑𝑢 = ∫ 𝑑𝑢 + ∫ 𝑑𝑢 + ⋯ + ∫
𝐵(𝑢)𝑛 𝐵(𝑢) 𝐵(𝑢)2 𝐵(𝑢)𝑛
 Integral Calculus Applications
Arc Length of a Function Surface Area of a Volume

Volume by Disk and Washer

Volume by Cylindrical Shell Work

Where: Where:
2πx – circumference f(x) - force
f(x) – height dx - distance
dx – thickness

Centroid of a Volume

Centroid of an Area Mass Moment of Inertia

Moment of Inertia for Areas

 First Order Differential Equations

Separable Variables
𝑑𝑦 𝑑𝑦
= 𝑔(𝑥 )ℎ(𝑦) ∫ = ∫ 𝑔(𝑥 )𝑑𝑥
𝑑𝑥 ℎ(𝑦)

Linear Equation
𝑑𝑦 𝑑𝑦
𝑎1 + 𝑎0 𝑦 = 𝑔(𝑥)  + 𝑃(𝑥 )𝑦 = 𝑓(𝑥)
𝑑𝑥 𝑑𝑥
(Standard form)

Integrating Factor: 𝑒 ∫ 𝑃(𝑥)𝑑𝑥

∫ 𝑒 ∫ 𝑃(𝑥)𝑑𝑥 𝑓(𝑥)𝑑𝑥
Solution: 𝑦 =
𝑒 ∫ 𝑃(𝑥)𝑑𝑥

Exact Equation
𝑀(𝑥, 𝑦)𝑑𝑥 + 𝑁(𝑥, 𝑦)𝑑𝑦 = 0

Where:
𝜕𝑓 𝜕𝑓 𝜕𝑀 𝜕𝑁
𝑀= ,𝑁 = and =
𝜕𝑥 𝜕𝑦 𝜕𝑦 𝜕𝑥

Non-exact Equation
Integrating Factor:
𝑀𝑦 −𝑁𝑋 𝑁𝑥 −𝑀𝑦
∫ 𝑑𝑥 ∫ 𝑑𝑦
𝑢(𝑥 ) = 𝑒 𝑁 or 𝑢(𝑦) = 𝑒 𝑀

𝑢(𝑥, 𝑦)𝑀(𝑥, 𝑦)𝑑𝑥 + 𝑢(𝑥, 𝑦)𝑁(𝑥, 𝑦)𝑑𝑦 = 0

(Exact Equation)
Higher Order Linear Equations – Homogeneous (Constant Coefficients)

𝑑2 𝑦 𝑑𝑦
+𝑎 + 𝑏𝑦 = 0
𝑑𝑥 2 𝑑𝑥

Case 1: real and distinct roots

Case 1 solution: 𝑦 = 𝑐1 𝑒 𝑚1𝑥 + 𝑐2 𝑒 𝑚2𝑥
Case 2: real and repeated roots
Case 2 solution: 𝑦 = 𝑐1 𝑒 𝑚𝑥 + 𝑐2 𝑥𝑒 𝑚𝑥
Case 3: conjugate complex roots (𝑚 = 𝑎 ± 𝑏𝑖)
Case 3 solution: 𝑦 = 𝑒 𝑎𝑥 (𝑐1 cos 𝑏𝑥 + 𝑐2 sin 𝑏𝑥)
Case 4: repeated complex roots (𝑚2 = −𝑎)2
Case 4 solution: 𝑦 = (𝑐1 + 𝑐2 𝑥) cos 𝑎𝑥 + (𝑐3 + 𝑐4 𝑥) sin 𝑎𝑥
Permutation - An ordered arrangement of any element of a set
Permutations of n different things taken r at a time
𝑛!
𝑛𝑃𝑟 =(
𝑛−𝑟 )!
Permutations of n different things taken n at a time
𝑛𝑃𝑛 = 𝑛!
Permutations of n objects taken n at a time where q are
alike, p are alike, s are alike…
𝑛!
𝑛𝑃𝑛 =
𝑞!𝑝!𝑠!
Permutations of n objects taken r at a time where q are alike,
p are alike, s are alike…
𝑛!
𝑛𝑃𝑟 = ( 𝑛−𝑟 )!𝑞!𝑝!𝑠!

Combination – a grouping arrangement of any element of a set

Combination of n different things taken r at a time
𝑛!
𝑛𝐶𝑟 = (𝑛−𝑟 )!×𝑟!
Combination of n different things taken n at a time
𝑛!
𝑛𝐶𝑛 = (𝑛−𝑛)!×𝑛!
=1
Combination of n objects taken 1, 2, 3,… n at a time
𝑛𝐶𝑛 = 𝑛𝐶1 + 𝑛𝐶2 + 𝑛𝐶3 + ⋯ + 𝑛𝐶𝑛
Probability
𝐸
𝑃 = (𝑃 𝑖𝑠 𝑚𝑎𝑥𝑖𝑚𝑢𝑚 𝑎𝑡 1, 𝑜𝑟 100% 𝑐𝑒𝑟𝑡𝑎𝑖𝑛𝑡𝑦)
𝑆
1 = 𝑃𝐴 + 𝑃𝑛𝑜𝑡 𝐴
𝑃𝐴 − 𝑡𝑜 ℎ𝑎𝑝𝑝𝑒𝑛
𝑃𝑛𝑜𝑡 𝐴 − 𝑡𝑜 𝑛𝑜𝑡 ℎ𝑎𝑝𝑝𝑒𝑛

Joint Probability – Mutually Exclusive (no common outcome)

𝑃𝐵 𝑜𝑟 𝐶 = 𝑃𝐵 + 𝑃𝐶
Joint Probability – Non-Mutually Exclusive (common outcome)
𝑃𝐵 𝑜𝑟 𝐶 = 𝑃𝐵 + 𝑃𝐶 − 𝑃𝐵 𝑎𝑛𝑑 𝐶
𝑃𝐵 𝑎𝑛𝑑 𝐶 − 𝑐𝑜𝑚𝑚𝑜𝑛 𝑜𝑢𝑡𝑐𝑜𝑚𝑒

Conditional Probability
𝑃𝐴 𝑎𝑛𝑑 𝐵 = 𝑃𝐴 × 𝑃𝐵 𝑤𝑖𝑡ℎ𝑜𝑢𝑡 𝐴
Independent Probability
𝑃𝐴 𝑎𝑛𝑑 𝐵 = 𝑃𝐴 × 𝑃𝑏
Repeated Trials
𝑃 = 𝑛𝐶𝑟 𝑝𝑟 𝑞𝑛−𝑟
𝑝 − 𝑝𝑟𝑜𝑏𝑎𝑏𝑖𝑙𝑖𝑡𝑦 𝑜𝑓 𝑠𝑢𝑐𝑐𝑒𝑠𝑠
𝑞 − 𝑝𝑟𝑜𝑏𝑎𝑏𝑖𝑙𝑖𝑡𝑦 𝑜𝑓 𝑓𝑎𝑖𝑙𝑢𝑟𝑒
𝑛 − 𝑛𝑜. 𝑜𝑓 𝑡𝑟𝑖𝑎𝑙𝑠
𝑟 − 𝑒𝑣𝑒𝑛𝑡 𝑜𝑐𝑐𝑢𝑟𝑒𝑛𝑐𝑒

Median – the middle term

2, 3, 4, 5, 6  4 is middle term
3+4
2, 3, 4, 5  = 3.5 → 𝑚𝑖𝑑𝑑𝑙𝑒 𝑡𝑒𝑟𝑚
2

Mode – the value which occurs most frequently

2, 3, 3, 6, 7, 8  3
2, 3, 3, 6, 6, 7, 8, 9  6 and 7
Mean – average Quadratic Mean
∑𝑥 ∑ 𝑥2
𝑀𝑒𝑎𝑛 = 𝑄𝑀 = √
𝑛 𝑛
x – entry
n – no. of entry

Range – difference between largest and smallest values

2, 3, 6, 9, 10, 15  15 – 2 = 13

Variance – average of the squared deviation from the mean

∑(𝑥−𝑚)2
𝑉=
𝑛
x – entry
m – mean
n – no. of entry

Standard Deviation Relative Variability Z-Score

𝜎 𝑥−𝑀
𝜎 = √𝑉 𝜇= 𝑍=
𝑀 𝜎
x – raw score
Position - 𝑠(𝑡)
′( ) 𝑑𝑠
Velocity -𝑣 =𝑠 𝑡 =
𝑑𝑡
𝑑2 𝑠
Acceleration - 𝑎 = 𝑣 ′ (𝑡) =
𝑑𝑡 2

Constant Acceleration
𝑎𝑡 2
𝑠=± + 𝑣𝑖 𝑡 + 𝑑𝑖 𝑣𝑓 = 𝑎𝑡 + 𝑣𝑖
2
𝑣𝑓 2 − 𝑣𝑖 2 = ±2𝑎𝑠

𝑣𝑜𝑦 2 𝑣𝑜𝑦
𝑣𝑜𝑦 = 𝑣𝑜 sin 𝜃 ℎ= 𝑡=
2𝑔 𝑔
𝑣𝑜𝑥 = 𝑣𝑜 cos 𝜃 𝑅 = 2𝑡𝑣𝑜𝑥

2𝑉𝑜 2 cos 𝜃 sin(𝜃−𝛽)

𝑅=
𝑔𝑠𝑖𝑛2 𝛽

2𝑉𝑜 2 cos 𝜃 sin(𝜃+𝛽)

𝑅=
𝑔𝑠𝑖𝑛2 𝛽
Displacement - 𝜃 (𝑡)
𝑑𝜃
Velocity - 𝜔 = 𝜃 ′ (𝑡) =
𝑑𝑡
𝑑2 𝜃
Acceleration - 𝛼 = 𝑣 ′ (𝑡) =
𝑑𝑡 2

Constant Acceleration
𝛼𝑡 2
𝜃=± + 𝜔𝑖 𝑡 + 𝜃𝑖 𝜔𝑓 = 𝛼𝑡 + 𝜔𝑖
2
𝜔𝑓 2 − 𝜔𝑖 2 = ±2𝛼𝜃

Linear and Angular Relation

𝑠 = 𝑟𝜃 𝑣 = 𝑟𝜔 𝑎 = 𝑟𝛼

Newton’s First Law Newton’s Second Law

∑𝐹 = 0 ∑ 𝐹 = 𝑚𝑎

Newton’s Third Law Law of Universal Gravitation

𝑚 1 𝑚2
𝐹=𝑅 𝐹=𝐺
𝑠2

Circular Motion
 Relative Motion

𝑟𝐵 = 𝑟𝐴 + 𝑟𝐵/𝐴
𝑣𝐵 = 𝑣𝐴 + 𝑣𝐵/𝐴
𝑎𝐵 = 𝑎𝐴 + 𝑎𝐵/𝐴

Work and Energy Principle

𝐾𝐸𝑖 + 𝑊𝑛𝑒𝑡 = 𝐾𝐸𝑓
KE - kinetic energy
Wnet - net work

Impulse and Momentum

𝑚𝑣𝑖 + 𝐹𝑡 = 𝑚𝑣𝑓
mv - momentum
Ft - impulse
If Ft = 0, then
𝑚𝑣𝑖 = 𝑚𝑣𝑓
 𝑉2𝑓 −𝑉1𝑓
Coefficient of Restitution 𝑒 =
𝑉1𝑖 −𝑉2𝑖
Elastic collision e=1
Inelastic/Plastic collision e=0
ℎ2
Drop and Rebound 𝑒=√
ℎ1
𝑡𝑎𝑛𝜃
Thrown at an angle 𝑒=
𝑡𝑎𝑛𝛽
Θ – Angle thrown from ground
Β – Angle rebound from ground

Angular Momentum
𝑚𝑟𝑣𝑖 + 𝐹𝑟𝑡 = 𝑚𝑟𝑣𝑓
mrv - angular momentum
Frt - angular impulse
If Frt = 0, then
𝑚𝑟𝑣𝑖 = 𝑚𝑟𝑣𝑓
Conical Pendulum Spring-Mass
 Centroidal Rotation

Friction Belt Friction

𝑇1
𝐹𝑓 = 𝜇𝑁 = 𝑒 𝜇𝛽
𝑇2
T1 – tight side
T2 – slack side
 Engineering Economics

Simple Interest
𝐼 = 𝑃𝑖𝑛
P - Principal
i - Interest rate
n - Number of periods
𝐹 =𝑃+𝐼
F - Future worth
Compound Interest Single Payment
𝐹 = 𝑃(1 + 𝑖)𝑛
𝑃 = 𝐹(1 + 𝑖)−𝑛
Present Worth of Annuity

Future Worth of Annuity

Arithmetic Gradient

Present Worth of Arithmetic Gradient

𝐺 (1+𝑖)𝑛 −1 1
𝑃𝐺 = [ ] [ − 𝑛] [ ]
𝑖 𝑖 (1+𝑖)𝑛

Arithmetic Gradient to Equivalent Annuity

- Equivalent Annuity starts at time 1 instead of time 2
1 𝑛
𝐴𝐺 = 𝐺 [ − ]
𝑖 (1+𝑖)𝑛 −1

Combined Arithmetic and Annuity

𝐹 = 𝐹𝐴 + 𝐹𝐺 𝑃 = 𝑃𝐴 + 𝑃𝐺
Geometric Gradient

Present Worth of Geometric Gradient

1+𝑔 𝑛
1−( )
1+𝑖
𝑃= ;𝑔 ≠ 𝑖
𝑖−𝑔
𝑛
𝑃= ;𝑔 = 𝑖
1+𝑖
Nominal Interest Rate
𝑟 =𝑖×𝑛
Effective Interest Rate
𝐸𝑅 = (1 + 𝑖)𝑚 − 1
𝑟
𝐸𝑅 = (1 + )𝑚 − 1
𝑚
m - Number of compounding periods per year

Continuous Compounding
𝐹 = 𝑃𝑒 𝑖𝑛
𝐸𝑅 = 𝑒 𝑟 − 1
Discount
𝐷𝑖𝑠𝑐𝑜𝑢𝑛𝑡
𝑑=
𝑃𝑟𝑖𝑛𝑐𝑖𝑝𝑎𝑙
𝑑
𝑖=
1−𝑑
Perpetuity Capitalized Cost
𝐴 𝐴
𝑃= 𝑃𝑐𝑐 = 𝑃𝑓𝑐 +
𝑖 𝑖
Break-even Point
𝐼𝑛𝑐𝑜𝑚𝑒 = 𝐸𝑥𝑝𝑒𝑛𝑠𝑒𝑠
Methods for Economic Studies
Rate or Return – minus interest on capital
𝑅𝑂𝑅 > 𝑖
Annual Worth – includes interest on capital
𝐴𝑛𝑛𝑢𝑎𝑙 𝑅𝑒𝑣𝑒𝑛𝑢𝑒 > 𝐴𝑛𝑛𝑢𝑎𝑙 𝐶𝑜𝑠𝑡
Present and Future Worth
𝐶𝑎𝑠ℎ 𝐼𝑛𝑓𝑙𝑜𝑤 > 𝐶𝑎𝑠ℎ 𝑂𝑢𝑡𝑓𝑙𝑜𝑤
Straight Line Depreciation

Declining/Double Declining Balance

- Fixed percentage method

𝐷𝑡 = 𝑑𝐵(1 − 𝑑)𝑡−1 = 𝑑𝐵𝑡−1

d - Fixed percentage depreciation from past year
Dt - Depreciation at t
Bt-1 - Book value from past year
𝐵𝑡 = 𝐵(1 − 𝑑)𝑡 = 𝐵𝑡−1 − 𝐷𝑡
Bt - Book value at
𝑆 = 𝐵(1 − 𝑑)𝐿
S - Scrap Value
𝑆 1
𝑑 = 1 − ( )𝐿
𝐵
Double Declining Balance Rate
2
𝑑=
𝐿
Sum-of-Years-Digits
𝐿−𝑡−1
𝐷𝑡 = (𝐵 − 𝑆)
𝑆𝑈𝑀
𝐿
𝑆𝑈𝑀 = (1 + 𝐿)
2
𝑡
𝑡(𝐿− +0.5)
2
𝐵𝑡 = 𝐵 − (𝐵 − 𝑆)
𝑆𝑈𝑀

Unit-of-Production
ℎ(𝐵−𝑆)
𝐷𝑡 =
𝐻
h - total output at t
H - total output at L

Sinking Fund
- Equivalent annuity equal/Annual cost of depreciation to
total depreciation accounting for interest
𝐵−𝑆
𝐴= (1+𝑖)𝐿 −1
( )
𝑖
(1+𝑖)𝑡 −1
𝐷𝑡 = 𝐴( )
𝑖
Benefit-to-Cost Ratio (BC)
𝐵 𝑆
𝐶 = 1−(1+𝑖)−𝐿 − (1+𝑖)𝐿−1
( ) ( )
𝑖 𝑖
𝐵−𝐶𝑚
𝐵𝐶 =
𝐶
C - Annual equivalent cost
Cm - Annual operational and maintenance cost