Question 3.4: Find the various compounding factors for N = 10 years and d ...

Find the various compounding factors for N = 10 years and d = 5 percent.

The Blue Check Mark means that this solution has been answered and checked by an expert. This guarantees that the final answer is accurate.
Learn more on how we answer questions.

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)

 

Related Answered Questions