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Interest formulas

Reference data und engineering information about interest formulas für economics applications.

interestformulas

Overview

Engineering reference data for Interest Formulas in economics.

Key Formulas

Present Value

PV=FV(1+r)nPV = \frac{FV}{(1+r)^n}

Discount a future value to present.

Net Present Value

NPV=t=0nCt(1+r)tNPV = \sum_{t=0}^{n} \frac{C_t}{(1+r)^t}

Sum of discounted cash flows.

Compound Interest

FV=PV(1+r)nFV = PV(1+r)^n

Future value with compound interest.

Variables

SymbolDescriptionUnit
PVPVPresent value$
FVFVFuture value$
rrInterest/discount rate
nnNumber of periodsyears

References