EME 460
Geo-Resources Evaluation and Investment Analysis

Summary of Lesson 1

Summary

Table 1-12 summarizes the material that we learned in Lesson 1.

**Table 1-12**: Compound Interest Formulas
Factor	Name	Formula	Requested variable	Given variables
F/P_i,n	Single Payment Compound-Amount Factor	${(1 + i)}^{n}$	F: future value of a single sum	P: present single sum of money n: number of time periods i: interest rate
P/F_i,n	Single Payment Present-Worth Factor	$1 / {(1 + i)}^{n}$	P: equivalent present value of a single sum	F: single future sum of money n: number of time periods i: interest rate
F/A_i,n	Uniform Series Compound-Amount Factor	$[{(1 + i)}^{n} - 1] / i$	F: Future value of uniform series of equal investments	A: uniform series of equal investments n: number of time periods i: interest rate
A/F_i,n	Sinking-Fund Deposit Factor	$i / [{(1 + i)}^{n} - 1]$	A: Uniform series of equal end-of-period payments	F: cumulated future value of investments n: number of time periods i: interest rate
P/A_i,n	Uniform Series Present-Worth Factor	$[{(1 + i)}^{n} - 1] / [i {(1 + i)}^{n}]$	P: Present value of uniform series of equal investments	A: uniform series of equal investments n: number of time periods i: interest rate
A/P_i,n	Capital-Recovery Factor	$[i {(1 + i)}^{n}] / [{(1 + i)}^{n} - 1]$	A: uniform series of equal investments	P: Present value of uniform series of equal investments n: number of time periods i: interest rate

To master all the knowledge to do your homework, you also need to go through the first two chapters of the textbook. Also, to finish your homework, you will need to know how to use Excel.

Reminder - Complete all of the Lesson 1 tasks!

You have reached the end of Lesson 1! Double-check the to-do list on the Lesson 1 Overview page to make sure you have completed all of the activities listed there before you begin Lesson 2.