Present worth equivalence in economical engineering, Other Engineering

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Present Worth equivalence:

Since we have developed the relationship to find a future value F given a present value P, we can easily derive the formula to find a (P|F, i, n), which is represented in the Figure.

2146_Present and Future Worth Equivalence.png


Figure: Present and Future Worth Equivalence

and the relationship is given by

P =D(l+i)-n
P = F(P| F,I,n)

 


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