Engineering Fundamentals: An Introduction to Engineering, 4th ed.c

For example, when evaluating the series payment equivalence of a present principal, instead of

writing,

we writeAP(A/P,i,n), where, of course,

In this example, the (A/P,i,n) term is called theinterest – time factor, and it readsAgivenPati%

interest rate, for a duration ofnyears. It is used to findA, when the present principal valuePis

given, by multiplyingPby the value of the interest – time factor (A/P, i, n). As an example, the

numerical values of interest – time factors fori8% are calculated and shown in Table 20.9.

1 A /P, i, n 2 c

1 i 211 i 2

n

11 i 2

n

 1

d

AP c

1 i 211 i 2

n

11 i 2

n

 1

d

TABLE 20.8 A Summary of Formulas for Situations when

iCompoundsmTimes per Year and the Uniform

Series AOccurs at the Same Frequency

To Find Given Use This Formula

ieff i

FP

PF

PA

AP

FA

AF AF ≥

i

m

a 1 

i

m

b

1 m 2 1 n 2

 1

¥

FA≥

a 1 

i

m

b

1 m 2 1 n 2

 1

i

m

¥

AP ≥

a

i

m

ba 1 

i

m

b

nm

a 1 

i

m

b

nm

 1

¥

PA≥

a 1 

i

m

b

nm

 1

i

m

a 1 

i

m

b

nm ¥

P

F

a 1 

i

m

b

nm

FP a 1 

i

m

b

nm

ieffa 1 

i

m

b

m

 1

20.8 Summary of Engineering Economics Analysis 669

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