ENGINEERING ECONOMY FORMULAS
Simple Interest
�� = ���
Compound Interest
Single-Payment
Compound Amount
Single-Payment
Present Worth
Uniform Series Present
Worth
Capital Recovery
Uniform Series
Compound Amount
Sinking Fund
Arithmetic Gradient
�� = �(1 + �)�
� = �(1 + �)�
�/�
�/�, �, �
�/�
�/�, �, �
�/�
�/�, �, �
�=�
1+� �−1
� 1+� �
�/�
�/�, �, �
�=�
1+� �−1
�
�/�
�/�
�/�, �, �
�/�, �, �
� = �(1 + �)−�
�=�
�=�
� 1+� �
1+� �−1
�
1+� �−1
1 + � � − �� − 1
�2 1 + � �
�� /�
�� /�, �, �
�� = �
�� /�
�� /�, �, �
�� = �
Geometric Gradient
��/�1
�� /�1 , �, �, �
�� = �1
Nominal Interest Rate
�� = �������� ���� ��� ���� ������ × ��. �� �������
�% ��� ���� ������ �
�� =
� ����������� ������� ��� �
Present Worth
Arithmetic Gradient
Compound Amount
Effective Interest Rate
1
�
−
�
1+� �−1
1−
1+� �
1−�
1−�