Using only the factor formulas given in Table 2.6, derive Equation 7.5 starting with Equation 7.3. TABLE

Using only the factor formulas given in Table 2.6, derive Equation 7.5 starting with Equation 7.3.

Transcribed Image Text:

TABLE 2.6 Summary of Discrete Compounding Interest Factors. To Find Given Factor Symbol Name P F (1+i)" (P|Fi%,n) Single sum, present worth factor F P (1+i)" (F\Pi%,n) Single sum, compound amount factor (1+i)"-1 P A (PA i%,n) Uniform series, present worth factor i(1 + i)" A P i(1 + i)" (1+i)" -1 (A|Pi%,n) Uniform series, capital recovery factor (1+i)"-1 F A (FA i%,n) Uniform series, compound amount factor i i A F (1+i)"-1 (A|Fi%,n) Uniform series, sinking fund factor [1-(1+ni)(1 + i)"] P G (P|G1%,n) Gradient series, present worth factor (1+i)" - (1+ni) A (A|Gi%,n) Gradient to uniform series conversion factor [(1+i)"-1] P Aj F Aj 1 (1 + j)" (1 + i) i-j (1+i)" (1 + j)" i-j for ij (PA, 1%,j%,n) Geometric series, present worth factor forij (FA 1%,j%) Geometric series, future worth factor