# 7 Most Powerful Time Value of Money Equations for Decision Making in Investment

**1. Future Worth/Value - Symbol ((F/P, i%, n) Converts to a future value -F- given a present single payment - P - today.**

**Where:**

**F = Future Value**

**P = Single payment Today**

**i = interest rate per period**

**n = Number of periods**

**2. Present Worth/Value - Symbol (P/F,i%,n) Converts a present value - P - given a future payment - F.**

**Where:**

**P = Present Value**

**P = Single future payment**

**i = discount rate per period**

**n = Number of periods**

**3. Uniform Series Present Worth/Value - Symbol**

*(P/A, i%, n)**A*- per interest period to a present value -

*P*

*Where:**P = present value*

*A = amount per interest period*

*i = discount rate*

*n = discount periods*

**4. Sinking Fund**

####
Sinking Fund - Symbol *(A/F, i%, n)*

Converts to a uniform amount, annuity - *A*- per interest period a given specific future value -

*F*

*Where:**A = uniform amount per period*

*F = future value*

*i = interest rate*

*n = number of periods*

**5.**

**Uniform Series Annuity - Symbol**

*(F/A, i%, n)*
Converts to
a future value -

*F*- given a uniform amount, annuity -*A*- per interest period

*Where:**F = future value*

*A = uniform amount per period*

*i = interest rate*

*n = numbers of periods*

**6. Capital Recovery**-

**Symbol**

*(A/P, i%, n)*
Converts a present value - P - to a uniform amount, annuity -
A - per interest period

*Where:**P = present value*

*A = amount per interest period*

*i = interest rate*

*n = discount periods*

### 7. Net Present Value/Worth (NPV/NPW)

__Total NPV__

__NPV for n year__

*Where:**Co – Initial Investment,*

*n – number of years,*

*C – Cash-flow of n year*

7 Most Powerful Time Value of Money Equations for Decision Making in Investment
Reviewed by CEDRICK KAU
on
February 13, 2017
Rating: