NAME OF THE FORMULA

FORMULA

TERMS : (1+i)^n = Compound value factor P=principal CVFn,I = Compound value factor for a periods at I rate of interest Term within brackets is the compound value of an annuity of RE 1=CVFA. Future value /CVFA Term in parantheses is Discount Factor Present Value Factor. Term within parantheses is the Present Value Factor Of an Annuity. A=ANNUAL FACTOR A=PERPETUITY, i=INTEREST RATE

FUTURE VALUE OF A SINGLE CASH Fn=p(1+i)^n FLOW FUTURE VALUE OF LUMP SUM Fn=P*CVFn,i FUTURE VALUE OF ANNUITY Fn=A[((1+i)^n-1)/i)]

SINKING FUND PRESENT VALUE OFSINGLE CASH FLOW PRESENT VALUE FACTOR OF AN ANNUITY CAPITAL RECOVERY PRESENT VALUE OF PERPETUITY PRESENT VALUE OF GROWING ANNUITY EFFECTIVE RATE OF INTEREST INTERNAL RATE OF RETURN

A=Fn[((i)/(1+i)^n-1)] P=Fn[(1)/(1+i)^n] P=A[(1/i)-(1/i(1+i)^n)]

RECIPROCAL OF PVAF P=A/i P=A/(1+g)[(1/i)-(1/(i*(1+i*)^n)] EIR=[1+(i/m)]^n*m _ 1

IRR= 1.762 1= 0.12 or 12%