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TABLE 3.4 Summary of Discrete Compounding Formulas With Discrete Payments Factor Cash Flow Flow Type Notation Formula Excel Command Diagram Compound F = P(1 + i)N amount -FV (i, N. O, P) N (F/P, i, N) G Present worth P = F(1 + i)-N E =PV(i, N, O, F) (P/F, i, N) Compound amount [ ( 1 + i) - 1 F = AS -FV(i, N, A) (F/A, i, N) A L 0123 N-IT. Sinking =PMT(i, N, O, F) AAA A fund Y A = F- HZME (A/F, i. N) L( 1 + i)N - Present worth P = A- (P/A, i, N) Lil + i)N =PV(i, N. A) AAA AA 123 N-IN Capital recovery A = P- i(1 + i)N =PMT(i, N, P) (A/P, i, N) PAQ Linear gradient (1 + i)N - iN - 17 (N-1)G Present P = G- worth 2 ( 1 +i )N (P/G, i, N) (1 + i)N - iN - 1 123 N-IN Annual worth A = p (A/G, i, N) 1 (1 + 1) N - 1 1] Geometric gradient A [1 - (1+ 8)"(1+i)-N- A1(1+g)N-1 A3 Present P = i - g A2 worth ( P/A1 . g, i, N) All ). (ifi = 8) 123 N P1. Today [t=0] your daughter is born [congratulations and good luck with that!) and you decide to start saving for her education. You gure that you will need to pay for 5 years of undergraduate engineering at $20,000 per year [from t=18 through t=22], and two years for graduate school at $30,000 per year [t=23 and t=24]. How much needs to be in her education account at t=13 to fund her education in full? [Choose the closest answer] a] 11?,960 b] 118,960 c] 119,960 d] 120,960