This is a mind map about factors of how time and interest affect money. Money today is worth more than money in the future. This is called the time value of money.

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Factors: How time & interest affect money

Single-Amount Factors

(F/P & P/F)

Uniform Seres Present Worth Factor & Capital Recovery Factor

(P/A & A/P)

Sinking foun factors & uniform series compound amount factor

(A/F & F/A)

Arithmetic Gradient Factors

(P/G & A/G)

G = Constant arithmetic change in cash flows from one time period to the next; G may be positive or negative.

Factor values for untabulated i or n values

The formula

Excel function

spreadsheet function

Geometric Gradient Series factors

It is common for annual revenues and annual costs such as maintenance, operations, and labor to go up or down by a constant percentage, for example, 5% or 3% per year.

Determining i or n for wknown cash flow values

Hand or Calculator Solution

Spreadsheet Solution

Factors - How time and interest affect money

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Factors: How time & interest affect money

Single-Amount Factors

(F/P & P/F)

Uniform Seres Present Worth Factor & Capital Recovery Factor

(P/A & A/P)

Sinking foun factors & uniform series compound amount factor

(A/F & F/A)

Arithmetic Gradient Factors

(P/G & A/G)

G = Constant arithmetic change in cash flows from one time period to the next; G may be positive or negative.

Factor values for untabulated i or n values

The formula

Excel function

spreadsheet function

Geometric Gradient Series factors

It is common for annual revenues and annual costs such as maintenance, operations, and labor to go up or down by a constant percentage, for example, 5% or 3% per year.

Determining i or n for wknown cash flow values

Hand or Calculator Solution

Spreadsheet Solution

Mind Map

Outline

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This work was published by EdrawMind user faisal almufaireej and does not
represent the position of Edraw Software.