Compound interest

To facilite equivalences computations, a series of interest formula will be derived. To simplify the presentation, we’ll use the following notation:

i =           interest rate per interest period. In the equation the interest rate is stated as a decimal (that is, 9%   minterest is 0.009).

n=           number of interest periods.

P =          a present sum of money

F =          A future sum of money. The future sum F is an amount, n interest periods from the present, that is ...equivalent to P with interest rate i.

A =         An end of period cash receipt or disbursement in a uniform series, continuing for n periods, the entire    ...series aquivalent to P or F at interest rate i.