Engineering Economic Analysis

Summary 127

Present worth:

P= F(1 +i) -n= F (PIF, i, n)

Uniform Series Formulas

Compoundamount:

[

(1 +i)n-1

]

=A(FIA, i, n)

F=A i

Sinking fund:

Capital recovery:

A=P

[

i(1+i)n

(1 +i)n_ (^1) ] =P(AI P, i, n)
Present worth:
[
(1 +i)n- 1
]

=A (PIA, i, n)

P =A i(1 +i)n

Arithmetic Gradient Formulas

Arithmetic gradient present worth:

.

[

(1+i)n -in -1

]

=G(PIG,i,n)

P= G i2(1+i)n

Arithmetic gradient uniform series:

[

(I+i)n-in-1

] G[

1 n

]

G(AIG

.

A-G - -- - l n)

• i(1 +i)n- i - i (1 +i)n- 1 - , ,

Geometric Gradient Formulas

Geometric series present worth, wherei=I-g:

[

1-(I+g)n(1+i)-n

]

=AI(PIA,g,i,n)

P= Al i_g

Geometric series present worth, wherei=g:

P= AI[n(1+i)-I]= AI(PIA, g, i, n)=AI(PIA, i, i, n)