What is the uniform-series compound-amount factor?
What is the uniform-series compound-amount factor?
The future value means the value of the invested amount in future present date. The future value is estimate value of the investment after the maturity date of the investment. It is also used to calculate the amount of the profit on the investment. The future value of the investment can be calculated in two ways such as by using simple interest and by using the compound interest method. The financial market is flexible so it makes very difficult the calculate the accurate future value.
In this question, it is required to determine the meaning of the uniform -series compound amount factor. Uniform compounding amount factor, generally denoted as (A/F, i, n), represents the ratio of future payments to the quantity of an annuity this is deposited to satisfy the future responsibilities. Such an annuity is referred to as a sinking fund. The duration bills are calculated such that the destiny cost of the annuity (A) is same to the destiny obligation (F). The formula of compounding amount factor is given below:
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