Relations for Discrete Cash Flows with End-of-Period Compounding
Type
Single
Amount
Find/Given
Factor Notation
and Formula
Relation
Compound
amount
Sample Cash Flow
Diagram
1
2
1
Present
worth
(Sec. 2.1)
-1
P/A
Present
worth
Uniform
Series
Capital
recovery
2
n—l
2
n—l I I n
1
—1
(Sec. 2.2)
i
Compound
amount
i
Sinking
fund
Arithmetic
Gradient
—in—I
PG/ G
Present
worth
Ad G
Uniform
series
Geometric
Gradient
(Sec.23)
Pg/A1 and g
Present
worth
2
1(1
+ on
1
i
(Gradient only)
n
n
(Sec. 2.5)
A Al( l +4)
n
(Gradient and base Al)
1
(Sec. 2.6)
2
n—l n