'Unknown interest rate' presentation slideshows

Time Value of Money Concepts

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Single-Payment Factors (P/F, F/P)

Single-Payment Factors (P/F, F/P). F = ?. Example: Invest $1000 for 3 years at 5% interest. i = .05. $1000. F 1 = 1000 + (1000)(.05) = 1000 (1+ .05 ) F 2 = F 1 + F 1 i = F 1 (1+ i ) = 1000 (1+ .05 )(1+ .05 ) = 1000 (1+ .05 ) 2 F 3 = 1000 (1+ .05 ) 3. $?.

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2.1 Combining Like Terms

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MER 439 Design of Thermal Fluid Systems Introduction to Engineering Economics 2. Factors

MER 439 Design of Thermal Fluid Systems Introduction to Engineering Economics 2. Factors Professor Wilk Winter 2007. Factor Notation. Single Payment Compound Amount Factor (F/P, i%, n): F/P = (1 + i eff ) n Single Payment Present Worth Factor (P/F, i%, n): P/F = (1 + i eff ) -n

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