3.6 Summary
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3.6 Summary (EMCG8)
 Always keep the rate of interest per time unit and the time period in the same units.
 Simple interest: \(A = P(1 + in)\)
 Compound interest: \(A = P(1 + i)^n\)
 Simple depreciation: \(A = P(1  in)\)
 Compound depreciation: \(A = P(1  i)^n\)
 Nominal and effective annual interest rates: \(1 + i = \left( 1 + \frac{i^{(m)}}{m} \right)^{m}\)

Future value of payments:
\[F = \frac{x\left[(1 + i)^{n}1\right]}{i}\]Payment amount:
\[x = \frac{F \times i}{\left[(1 + i)^{n}1\right]}\] 
Present value of a series of payments:
\[P = \frac{x \left[1  (1 + i)^{n} \right]}{i}\]Payment amount:
\[x = \frac{P \times i}{\left[1  (1 + i)^{n}\right]}\]
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