Engineering Economic Analysis

128 MORE INTERESTFORMULAS

Single Payment Formulas: Continuous Compounding

at Nominal Rater per Period

Compound amount:

F = P(ern) = P[F I P, r, n]

Present worth:

P = F(e-rn) =F[P I F, r, n]

Note that square brackets around the factors are used to distinguish continuous.

compounding.

Uniform Payment Series: Continuous Compounding

at Nominal Rater per Period

Continuouscompoundingsinkingfund:

[

er-1

]

A= F ern- 1 = F[AjF,r,n]

COJ,ltinuouscompounding capital recovery:

[

ern(er - 1)

]

A=P =P[AIP,r,n]

ern- 1

Continuous compounding series compound amount:

[

ern- 1

]

F=A. er- 1 =A[FIA,r,n].

Continuous compounding series present worth:

[

ern- 1

]

P=A =A[PIA,r,n]

ern (er- 1)

Continuous, Uniform Cash Flow (One Period) with Continuous

Compounding at Nominal Interest Rater

Compoundamount

• [

(er- 1Hern)

]

=F[F IF, r, n]

F= P rer.