Find the various compounding factors for N = 10 years and d = 5 percent.
Find the various compounding factors for N = 10 years and d = 5 percent.
The values of the compounding factors for d = 0.05 and N = 10 years are summarized below:
Value | Equation Used | Compounding Factor |
1.629 | Eq. (3.16) | SPCA |
0.613 | Eq. (3.17) | SPPW |
0.129 | Eq. (3.21) | USCR |
7.740 | Eq. (3.22) | USPW |
SPCA(d,N) = F/P = (1+d)^{N} (3.16)
SPPW(d,N) = P/F = (1+d)^{−N} (3.17)
USCR (d,N)=A/P=\frac {d(1+d)^{N}}{(1+d)^{N}-1}=\frac {d}{1-(1+d)^{−N}} (3.21)
USPW (d,N}=P/A=\frac {(1+d)^{N}-1}{d(1+d)^{N}}=\frac{1-(1+d)^{−N}}{d} (3.22)