APPENDIX B

CONTINUOUS INTEREST, DISCRETE VALUE EACTORS

B.1 Factor Development

In Chapter 2 it was shown that compounding interest an infinite number of
times per year leads to what is called "continuous compounding of interest."
In this appendix, the compound interest formulas are derived for continuous
interest with end of peri6d payments. In the next appendix the formulas are
developed for continuous interest with the continuous flow of money.

The following symbols will be used in the formulas to be developed:

r = the nominal annual continuous interest rate
n = the number of years

P, A, and F are defined as used throughout the text.

If a principal, P, is drawing continuous compound interest, an incremental
interest amount, AP, is accumulated in incremental time, At. writing an
incremental dollar balance as shown in equation B-l gives p at time t + At
-
P at time t equals P times r times the incremental time, At.
plt+4t--plt
elt+at-plt=prAt or At
-r. B-1

Taking the limit as At approaches zero gives

plt+at-plt=dp=p.
,.rn
A^t-+O At dt B-2

since the left side of Equation B-2 is the definition of the derivative of p
with respect to t.
 Aopendix B: Continuous lnterest, Discrete Value Factors 671

Separating the variables and integrating EquationB-Z yields

t?F
oo '=,.n
J 7: Jrdt B-3
,n=P t=0

i:
in P,*-. 1l
ln
or ln F/P=rn
iP lo
B-4

Taking the antilog of Equation B-4 gives

\
F=Pern =p(pn-
\' ,,n/ B-5

The factor em is the continuous interest single payment compound amount

factor. Solving Equation B-5 for p gives:

r = r'(i. = r(nlrr,, B-6

"'n ) )
The factor l/ern is the continuous interest single payment present worth
i rct<.rr.

As we did in Chapter 2 for discrete perio<i compound interest we can now

deveiop a uniform series compound amount factor for continuous interest
u'irh equal end of period payments. Treating each terrn of the series of pay-
nrenrs individually yields the equation

F=A+Aer+ Ae}t+...+A".(n-2)*o.r(n-l) B_7

Multiplying each side of Equarion B-7 by e, yields

Fer=Aer +Ae2r+Ae3r+...+o.r(n-l)+Aem B_g

Subtracting Equation B-7 from B-8 gives

Fer-F=Aern-A
or

, = o[{.-L-l= o(r7o..,)
L.'-t\
-l B-9

where the factor (ern - \ I (er - 1) is the continuous interest discrete end-of-
period payment uniform series compound amount factor.
 Economic Evaluation and lnvestment Decision Methocts

Reananging Equation B-9 gives

a= ri:l-r
L.'n - r
J=.(or,.,)
_l
B-ro

where the factor (er - l;/lsrn l) is the continuous interest

- discrete end-of_
period payment sinking fund deposit factor.
Formulas relaring A and p result by combiiring Equations B-5
and B-9 to
eliminate R
t* I
p=nl , "*ll l=o(rlo.,n) ,_,,
L(" -')"* l
where (em - -
1)/(er l)srn is the continuous interest discrete end-of-period
payment uniform series present worth factor. Rearranging
Equation B_11
gives

[f". - r)"- I
o=tl*l=n(er,,,)
L_l I w -l B-T2

where (er - l;ern7(em - 1) is the continuous interest discrrete

end-of-period
payment capital recovery factor.

Table B I gives tabulated values of these continuous inte:rest,

discrete dol-
lar value factors.

8.2 Applications
EXAMPLE B-1 Continuous lnterest Compared to Annual
I
and Effective lnterest.
Calculate the future worth 6 years from now of a present sum of
$1000 if interest is:
a) 10% per year compounded continuously
b) 10% per year compounded annually
c) an effective annual rate for 10% compounded corntinuously.
Solution:
a) $1ooo
0 1____6 F=1000(F/prr,6) forr=0.10
 Appendix B: Continuous lnterest, Discrete Value Factors

{rom Appendix B, FlP1.6= s6r = s0'60 = 1.g22

t,rerefore, F = 1000 (1:822) = $1922
1.772
b) F = 1000 (F/P;, 6) = 1772
for i = 10o/"
c/ Same result as "a", i.e., effective continuous iiterest gives the
identical result with ccntinuous cornpotlndinq i: i;ie noi,,irial rate.
The effective rate is E =ef - 1 = eO.i - 1 = 1.;c52 1 - O..lO52
-
ar 10.52rL. This rate compounded annually gives the same
result as 10% compounded continuously.
EXAMPLE B-2 Continuous lnterest for Uniform Series
Determiire the uniform series of end of year payments required to
amortize a $10,000 loan in 10 years if interest is
a) r = 6% per year compounded continuously
b) i = 6%.per year compounded annuaiiy
c) E = irn effective annual rate for 6% compounded continubusly.
Solutron:
a) $t0,000 A A .fi70
0 1----6 soA=.10,0C0(fupr,1O)=$1gZO
(o o0l e-[l'ezzt)
uvhere Npr.t6 = (s.06 -1 r e.6011..60 - r,'t - 0.8221
.1359
b) A = 10,000 (tuPi,1g) = $1359
c) Same result as "a", since compounding ,,r,,
continuously gives
the same total annual interest as compounding the effective rate, E
=
er - l,annually.

continuous Interest Factors for I-ump Sr-rm End-of-period payments:

FiP,.., - eril
P/Fr,n = l/ern
F/Ar.,, - lstl) - I )iter- I t

A/Fr.n = (er - l)(ern - 1)

P/A = (ern - 1)/(er - 1;srn
A/Pr.n = (er - l)ernl1ern - 1;
674 Economic Evaluation and lnvestment Decision Methods

r= l0.00%o

n F/Pr,n P/Fr,n F/Ar,n A./Irrn A./Prrn . P/Ar,n

I
,,
1.10517 0.90484 1.00000 1.00000 1.10517 0.90484
1.22140 0.81873 2.1C517 0.4'7502 0.58019 1.72357
3 r.34986 0.74082 3.32657 0.30061 0.40578 2.46439
4 1.49182 0.67032 4.67643 0.21384 0.31901 3.1347 I
5 1.648't2 0.606s3 6.16826 0.16212 0.26729 3.74124
6 1.82212 0.54881 7.81698 0.12793 0.23310 4.29005
7 2.01375 0.49659 9.63910 0.t0374 0.20892 4.78663
I 2.22554 0.44933 l r.65285 0.08582 0.19099 5.23s96
9 2.45960 0.40657 13.87839 0.07205 0.17723 5.64253
l0 2.7t828 0.36788 16.33799 o.06t2l 0.16638 6.01041
l1 3.00417 0.33287 19.05628 0.05248 0.15765 6.34328
t2 3.32012 0.30119 22.06044 0.04533 0.15050 6.6M48
13 3.66930 0.272s3 25.380s6 0.03940 0.14457' 6.91701
t4 4.05520 0.24660 29.A4986 0.03442 0.t39s9 7.16361
15 4.48169 0.22313 33.10506 0.03021 0.13538 7.38674
t6 4.95303 0.20190 37.58674 0.0266r 0.13178 7.58863
17 5.47395 0. 1 8268 42.53978 0.02351 0;t2868 7.77132
r8 6.04965 0.16530 48.01372 0.02083 0.12600 7.93662
t9 6.68s89 0.14957 54.06337 0.01850 0.t2367 8.08618
20 7.38906 0.13534 60.74927 0.01646 0.12t63 8.22152
2t 8.16617 0.t2246 68. l 3832 0.01468 0.11985 8.34398
22 9.02501 0.1 1080 76.30449 0.0131 I 0.11828 8.45478
23 9.97 418 0.r0026 85.3295 I 0.01t72 0.11689 8.55504
24 1 1.0231 8 0.09072 95.30369 0.01049 0.11566 8.64576
25 12.18249 0.08208 106.32686 0.00940 0.11458 8.'12'.784
26 13.46374 0.07427 I18.50936 0.00844 0.11361 8.80211
27 14.87973 0.06721 13 I .973 10 0.007s8 0.1127 5 8.86932
28
)o
16.44465 0.06081 146.85283 0.00681 0. 1 r 198 8.9301 3
I 8.1 741 5 0.05502 163.29747 0.00612 0.11129 8.98515
30 20.0855,1 0.04979 181.11162 0.005-s r 0.11068 9.03194
35 33.1 1545 0.03020 305.36438 0.0032"7 0.10845 9.2212t
40 -54.59815 0.01832 509.62900 0.00196 0.10713 9.33418
45 90.01 7 l3 0.011 l1 846.40443 0.001 r 8 0.10635 9.40270
50 r48.41316 0.00674 1401.65325 0.00071 0.10588 9.44427
55 244.69193 0.00409 23r7.10378 0.000.13 0.10560 9.46947
60 403.428't9 0.00248 3826.42655 0.00026 0.10543 9.48176
65 665.t4163 0.00150 6314.87910 0.00016 0.10533 9.49104
Acpendix B: Continuous lnterest, Discrete Value Factors 675

r= 12.(){lc,t

n F/Pr,n P/Fr,n F/Ar,n A./Fr,n A/?r,n P/Ar,n

I t.12i 50 0.88692 1.00000 1.00000 t.127 50 0.88692
2 1.2'7125 0.78663 2. i :750 0.4700.1 0.59753 1.67355
3 l.+J-1 1-) 0.69768 3._1'9875 0.29423 0.12112 237122
4 1.61607 0.61878 ,+ 8-r208 0.20695 0.33445 2.99001
5 1.82212 0.548I-t 1 6.44815 0.155rJii 0.282-58 3.53882

o ).05443 0.486r5 8.?10?.1 0.12092 0.24E41 4.02557

: 1.3 i 637 0.43 i 7l I 0.3t470 0.09686 0.22435 4.45728
!J '2.61170 0.38289 t2.64107 0.079 r r 0.20660 4.84018
9 2.94468 0.33960 15.252',71 0.06556 0.19306 5.17977
10 3.32012 0.301 19 I 8.1974-1 0.054!,5 0.18245 5.48097

11 ?.74342 0.26714 21.517 -\6 0.01647 0.17397 5.74810

ti 4.22070 0.23693 25 750e3 0.03959 0.16708 s.98503
l3 4.75882 0.210r 4 29.48 r 68 0.03392 0.16142 6.19516
l4 5.36556 0. I 8637 34.24050 0.02921 0.r5670 6.38154
15 6.04965 0.165i0 39.50606 0.02525 0.t52-t5 6.54684

l6 b.82096 0.14461 45.65570 0.02r 90 0.149"10 6.69344

t7 7.69061 0. 130,13 52.4'7666 0.01906 0.14655 6.82347
is 8.67 rt4 0. l 1533 60.i6127 4.0rc62 a.i44t2 6.93880
ts 9.7'1668 0.10228 68.83841 0.014-53 0.14202 7.04108
20 I 1.02318 0.09072 78.61509 0.01272 0.14022 7.13180

:1 12.428b0 0.08046 89.63827 0.01I t6 0. 13865 7 .21226

-))
14.01310 0.07136 102.06586 0.00e80 0.t3729 7.28362
:rt 15.79984 0.06329 I 16.0E007 0.00861 0.13611 7.14691
21 17.8142't 0.0561 3 1 31 .87991 0.007s8 0. I 3508 7.40305
l5 20.08554 4.04919 t49.69418 0.00668 0.13418 7.15283

:6 22.64638 0.04416 t69.179'.72 0.005E9 0.13339 7 .49699

)7 25.53372 0.039 r 6 192.426t0 0.00520 0.13269 7.53616
28 28.'789t9 0.034'71 2t7.95982 0.00459 0.13208 7.57089
29 32.45972 0.0308 r 246.74901 0.0040s 0. l3 l s5 1 .60170
30 36.59823 0.02'732 219.20873 0.00358 0.13108 7.62902

35 66.68633 0.01500 515.19963 0.00194 0.12944 '1.72572

.{0 121.5t042 0.00823 945.20309 0.00106 0. 128-55 7 .77878
tl5 221.40642 0.004s2 1728.72046 0.00058 2808 7.80791
0. r
50 40?.42879 0.00248 3 1 56.38220 0.00032 0.1218t 7.82389
55 73i.09519 0.00 r 36 5757.75150 0.00017 0.12"767 7.83266
t)0 l i39.4_1076 0.(i00r5 10497.7-55+1 0.00010 0.t2ii9 7.ri3748
6-. 2440.60197 0.00041 19134.60561 0.00005 0.1275s 7.84012
676 Economic Evaluation and lnvestment Decision Methods

r= l5.00%a

n F/Pr,n P/Fr,n F/Ar,n A./Fr,n A./Pr,n P/Ar,n

1 1.16183 0.86071 1.00000 1.00000 1.16183 0.86071
2 7.34986 0.74082 2.16183 0.46257 0.62440 1.60153
3 1.56831 0.63763 3.51169 0.28476 0.44660 2.23915
4 1.82212 0.54881 5.08001 0.1968s 0.3s868 2.7879,7
5 2.11700 0.47237 6.90212 0.14488 0.30672 3.26033
6 2.4s960 4.40657 9.01912 0.11088 0.21271 3.66690
7 2.85765 0.34994 11.47873 0.08712 0.24895 4.01684
8 3.32012 0.30119 14.33638 0.06975 0.23159 4.31803
9 3.85743 0.25924 17.65650 0.05664 0.21847 4.57727
10 4.48169 0.22313 21.51392 0.04648 0.20832 4.80040
11 s.20698 0.19205 2s.99561 0.03847 0.20030 4.9924s
12 6.44965 0.16530 31.20259 0.03205 0.19388 5.15775
13 7.02869 0.14227 37.25224 0.02684 0.18868 5.30003
t4 8.t661't 0.12246 44.28092 0.02258 0j8442 5.42248
15 9.48774 0.10540 52.44709 0.01907 0.18090 s.52788
16 I 1.023 18 0.09072 61.93483 0.01615 0.17798 5.61860
17 t2.80710 0.07808 72.95801 0.01371 0.17554 5.69668
18 14.87973 0.06721 85.76511 0.01166 0.t7349 5.76389
I9 17.28778 0.05784 100.64484 0.00994 0.r717't 5.82173
20 20.08554 0.M979 1t7.93262 0.00848 0.17031 5.87152
2t 2333606 0.04285 r38.01816 0.00725 0.16908 5.91437
22 27.11264 0.03688 161.35423 0.00620 0.16803 s.95t2s
23 31 .50039 0.03175 l 88.46686 0.00531 0.16'714 5.98300
24 36.59823 0.02732 219.96726 0.00455 0.16638 6.01032
,( 42.s2108 0.02352 256.56549 0.00390 0.16573 6.03384
26 49.40245 0.02024 299.086s7 0.00334 0.16518 6.05408
27 57.39746 0.01742 348.48902 0.00287 0.16470 6.07 i 5 1
28 66.68633 0.01500 405.88648 0.00246 0.16430 6.08650
29 77.47846 0.0t29t 472.57281 0.00212 0.16395 6.0994r
30 90.01 71 3 0.0r 111 ss0.05 r 27 0.00182 0.16365 6.11052
35 190.56627 0.0052s 1171.36068 0.00085 0.16269 6.14674
40 403.42879 0.00248 2486.672.70 0.00040 0J6224 6.16385
45 854.05876 0.00117 s27t.18827 0.00019 0.t6202 6.17193
50 1808.04241 0.00055 11166.00777 0.00009 0.16192 6.t7574
55 3827.62582 0.00026 23645.34077 0.00004 0.16188 6.17755
60 8 r 03.08392 0.00012 s0064.08891 0.00002 0.16185 6.17840
6s 17154.22878 0.00006 10s992.s'7917 0.00001 0.16184 6.17880
Appendix B: Continuous lnterest, Discrete Value Factors 677

r= 20.0(lVo

n F/Prrn P/Tr,n F/Ar,n A./Fr,n , A/Pr,n P/Ar,n

I t.22140 0.81873 1.00000 1.00000 1.22140 0.81873
2 t.49182 0.67032 2.22140 7 0.67157
0.4501 1.48905
J 1.822t2 0.5.18S1 3.1i323 t).26931 0.49071 2.03.1\6
4 1.22554 0.449i3 5.5353-5 u.180r'i6 0.10206 2.48i 19
5 2.7 I 828 0.36788 7.76089 0. i28,i5 0 1s025 2.8s507

6 3.32012 0.30119 10.41917 0.095.13 0.31683 3.15627

7 4.05520 0.24660 13.79929 0.01247 0.29381 3.40286
8 4.95303 0.20190 t7.85449 0.056i)1 0.2't741 3.60176
9 6.04965 0.16530 22.80752 0.043ri5 0.26525 3.77006
10 7.38906 0.13534 28.85717 0.03465 0.25606 3.90539
11 9.02501 0.1 1080 36.24622 0.02759 0.24899 4.01620
t) 18
l 1 .023 0.09072 45.27t24 0.02209 a.?4349 4.10691
r3 t3.46374 0.0742'7 56.294.1" 0.0t'176 0.23917 .1.18119
l4 i6.14465 0.06081 69.758 l5 0.0i434 0.23574 4.24200
l5 20.08554 0.049i9 86.20280 0.01160 0.23300 4.29178
l6 24.53253 0.04076 r 06 28833 0.00941 0.23081 4 33255
17 29964t0 0.03i3 / I 30.E2086 0.00764 0.22905 1.36592
r8 36.59823 0.02732 l 60.78496 0.00622 0.22762 4.39324
l9 41.74118 0.0223'7 197.38320 0.00507 0.22647 4.41561
?{) s4.59815 0.01832 242.08438 0.00413 0.22553 4.433e3
21 66.68633 0.0rs00 296.68253 0.00337 4.22411 4.14893
22 8r.45087 0.01228 363.36886 0.00275 t\.22415 4.46t20
23 99j8432 0.01l'J05 144.819'73 0.00225 0.22365 1.47 t25
21 121.5t442 0.01)823 541.30405 0.001t34 \).22324 4.4 ,-948
l5 l-18.11 316 0.0067-l 665.8 I 447 0.00l -50 0.22294 4A8(t22

26 t81.27224 0 00ss2 8t4.22762 0.00 r 23 0.22263 4.49174

27 221.10642 0.00,1.s2 995.499E7 0.00100 0.22241 4.49626
28 270.12611 0.00370 12 l 6.90628 0.00082 0.22222 4.4999s
29 330.29956 0.00303 t487.33269 0.00067 0.22208 4.50298
30 403.42879 0.00248 1811.63225 0.00055 0.2219s 4.50516
-15 r096.63316 0.00091 4948.59160 0.00020 0.22160 4.5t254
40 2980.9-5798 0.00034 r 3459.44381 0.00007 0.22148 4.51514
45 8103 08392 0.00012 36591.32242 0.00003 0.22143 4.5r6r0
50 22026.16576 0.00005 9948t.44253 0.00001 0.22141 4.51645
 a

678 Economic Evaluation and lnvestment Decision Methods

r = 25.00Vo

n F/Pr,n P/Fr,n F/Ar'n A./Fr,n A./Pr,n P/Ar,n

1 1.28403 0.77880 1.00000 1.00000 1.28403 0.77880

2 1.648'12 0.60653 2.28403 0.43782 0.12185 1.38533
3 2.1 1700 0.47237 3.93275 0.25428 0.53830 1.857',t0
4 2.71828 0.36788 6.04915 0.16530 0.44932 2.22558
3 3.49034 0.28650 8.76803 0.1 1405 0.39808 2.51208

6 4.48169 0.22313 12.25837 0.08158 0.36560 2.7352r

7 5.15460 0.17377 L6.74006 0.059't4 0.34376 2.90899
8 7.38906 0.13534 22.49466 0.04445 0.32848 3.04432
9 9.4877 4 0.10540 29.88312 0.03346 0.31'749 3.14972
10 12j8249 0.08208 39.37146 0.02540 0.30942 3.23181
11 15.64263 0.06393 51.55395 0.01940 0.30342 3.29573
t2 20.08554 0.u979 67.19658 0.01488 0.29891 3.34552
13 25.79034 0.03877 87.28212 0.01146 0.29548 3.38429
t4 33.1 1545 0.03020 113.0'1246 0.00884 0.29287 3.41449
15 42.52108 0.02352 146.18791 0.00684 0.29087 3.43801
t6 54.59815 0.01832 l 88.70899 0.00530 0.28932 3.45633
l7 70.10541 0.01426 243.30714 0.00411 0.28814 3.47059
18 90.01713 0.011 I 1 313.41255 0.00319 0.28722 3.48170
19 115.58428 0.00865 403.42969 0.00248 0.28650 3.49035
20 148.41316 0.c0674 519.0139'l 0.00193 0.28595 3.49709
2t 190.56627 0.00525 667.42713 0.00150 0.28552 3.50234
'r", 244.69193 0.00409 851.99340 0.001 17 0.28519 3.50642
21 3 14.19066 0.00318 I 102.68533 0.00091 0.28493 3.50961
24 403.42879 0.00248 1416.87 599 0.00071 0.28473 3.51208
25 s 18.01282 0.001 93 1820.30478 0.00055 0.28457 3.51401
26 665.14 163 0.00150 2338.31',761 0.00043 0.28M5 3.51552
27 854.05876 0.001 17 3003.45924 0.00033 0.28436 3.51669
28 r096.63316 0.00091 3857.51800 0.00026 0.28428 3.51760
29 1408.10485 0.00071 49-s4.l5ll6 0.00020 0.28423 3.51831
30 I 808.0424 I 0.00055 6362.25600 0.00016 0.28418 3.51886
35 6310.68810 0.00016 2221s.22316 0.0000s 0.2840'7 3.52025
40 22A26.46s'76 0.00005 71541.51616 0.00001 0.28404 3.52065
"168'79.91962 0.0000r 2706'76.19698 0.00000 0.28403 3.52071
't5
50 268337.28595 0.00000 944761.52569 0.00000 0.28403 3.52080
Appendix B: Continuous lnterest, Discrete Vaiue Factors 679

r = 30.007o

n F/Pr,n P/Fr.n F/Ar.n A/Fr.n A./Pr,n P/Ar,n

1 1.34986 0.74()82 1.00000 1.00000 1.34986 0.74082

) 1 82:12 0,5-i881 2. ii9s6 0..i:5i60'i75.+2 1.28963
3 2.,15960 0.40657 ,1. 1 71 98 0.23.'69C.58955 1.69620
4 3.32q I 2 0.301 I 9 6.63 i 58 0. i 5t)79
0.5u0,.r5 | .99739
5 '1.-18
1:,9 0.223 lr 9.t5 i ;0 0. l0iia9
0.451,:i4 2.22052
6 6.04965 0.1 6530 14.43319 0.06928 0.419 i4 2.38582
7 8.r6617 0.1:246 20.48-?t)3 0.04882 0.39868 2.5\)828
8 1 1.023 r8 0.09072 28.64920 0.03.190 0.38476 2.59900
9 14.87913 0.06721 39.67238 0.02521 0.37507 2.66620
t0 20.08554 0.049;9 54.552t r 0.018-j3 0.36E l 9 2.71599

11 27.112{14 0.03688 74.63765 0.013,10 0.36326 2.75287

t2 36.598:3 0.02i 32 I 01.75029 0.00e83 0.359(t9 2.78020
13 49.40245 0.02024 l 3E.34852 0.00713 0.3.57r)9 2.80044
t4 66.68633 0.0r 500 t8i.75097 0.0c5 r3 9
0.3551 2.81543
l5 90.017 , i 0.0iIr1 251.4311() 0.0(13!)3 0.3-,l'9 2.82654

r6 111.510-i2 0.00823 3"14.45-i43 0.00190 0.35216 2.83477

t7 .16.1.02191 0.00610 "165.96465 0.0021 5 0.352u0 2.84087
i8 22r.40612 0.004-52 629.98676 0.00159 0.351.15 2.84539
19 298.86740 0.0(1335 85 1.393 17 0.00117 0.35103 2.84873
2A 403.42819 0.00248 I 150.2ir057 0.000s7 0.35073 2.85121

2l -54.1.57 l9l 0.00184 r 553.669-17 0.00064 0.350i0 2.85305

22 73-5.09519 0 00r36 2098.26128 0.00048 0.35034 2.85441
_-1 q92.27,41 I 0.00 10 I 2833.35647 0.(10035 0.3501I 2.855,12
34 1339.:13076 0.00075 i82-s.631 t8 0 00026 0.35012 2.856I6
l-i i 8i)8.0.12.11 0.000-i5 5165.061')-l ().0c019 0.350')5 2.856,-2

)6 2J:10.60197 0.000.11 6973. I 0436 0.000 l4 0.35u00 2.857 12

)7 -119'1.468i)7 0.00030 94 I 3.70o1 3 (r 0001I 0.34991 2.85'743
l8 4J11 .066i 4 0.00022 12708.17.140 0.00008 0.34991 2.85'165
29 6002.91221 0.000 r 7 17155.21114 0.00006 034992 2.85782
30 8 103.08392 0.00012 23158.1s335 0.00004 0.34990 2.85794
680 Economic Evaluation and lnvestment Decision Methods

r= 40.00Vo

n F/Pr,n P/Tr,n F/Ar,n A.rFr,n A./Prrn P/Ar,n

1 1.49t82 0.67032 1.00000 1.00000 t.49t82
2 0.67A32
2.22554 0.44933 2.49182
3 3.32012 0.301 I9
0.40131 0.893 l4 l.l 196s
4.71737 0.21198 0.70381 1.4208.1
4 4.95303 0.20190 8.03748 0.12442 0.61624 r.62274
5 7.38906 0. I 3534 12.99051 0.07698 0.56880 1.75808
6 11.02318 0.09072 20.37957 0.04907 0.54089
7 16.44465 0.06081 31.40275 0.03184 0.52367
L84879
8 24s32s3 0.04076 47.84739 0.02090 0.5t272
1.90960
9 36.59823 0.02732 72.37992 0.0r 382 0.50564
1.95037
t0 54.59815 0.01832 108.978 l6 0.00918 0.50100
1.977 69
1.99600
11 81.45087 0.01228 163.5763r 0.00611 0.49794
t2 121.51042 0.00823 245.02718 0.00408 0.49591
2.00828
13 181.27224 0.00552 366.53759 0.00273
2.01651
t4 270.42641 0.00370 547.8A984 0.00183
0.49455
0.4936s
2.42203
15 403.428.79 0.00248 818.23624 0.00122 0.49305
2.O2s73
2.02820
16 601.84504 0.00166 1221.66504 0.00082 0.49264
17 897.84729 0.0011r 1823.51007 0.00055
2.02987
l8 1339.43076 0.00075 2721.35',736 0.00037
0.49237 2.03098
t9 1998.19589 0.00050 4060.78813 0.00025
0.49219 2.03173
20 2980.95798 0.00034 6058.98402 0.00017
0.49207
0.49t99
2.03223
2.03256
2t 4417.06674 0.00022 9039.94200 0.00011
r, 0.49194 2.03279
6634.24400 0.0001s 13487.00874 0.00007
23 0.49190 2.03294
9897.12904 0.00010 20121.25274 0.00005
24
0.49187 2.03304
14764.78t54 0.00007 30018.38 t 78 0.00003
25
0.49186 2.0331|
22Q26.46576 0.00005 41783.t6333 0.00002 0.491 8s 2.033 r 5
26 328s9.62s62 0.00003 66809.62908 0.00001 0.49184 2.03318
27 49020.801 05 0.00002 99669.25470 0.00001 0.49183 2.03320
28 73130.44170 0.00001 r 48690.05575 0.00001 0.49183 2.03322
29 t09097.79906 0.00001 221820.49714 0.00000 0.49183 2.03323
30 1627 54.79109 0.0c001 3309 I 8.29650 0.00000 0.491 83 2.03323
 Appendix B: Continuous lnterest, Discrete Value Factors 681

r = 50.007o
n F/Pr,n Pllirrn F/Ar,n A,/Fqn A/Pr,n P/Ar,n
1
)
1.648,12 0.60553 1.00000 1.00000 1.64872 0.606-53
2.71828 0.36788 2.61872 437',154 1.02626 0,9,1441
3 4.48169 0 22i 13 -s.36700 tl. 18632 0.8350.1 I . 19754
I 7.38-'ti,t6 0.135-34 9.8,1869 0.10154 0.75026 1.33288
5 12. 1 8:-i9 r; 08108 11 .23115 0.05801 0.70673 t.11496
6 20.0E554 {, 0-1979 29.4207+ 0.03399 0.68271 1 16475
7 33.11545 0.03020 49.50578 0.02020 0.66892 1.19491
n s.1.598 15 0.01832 32.62123 0.0r2r0 'J.66082 1.51326
9 90.017 r 3 0.0i l i r 137.21938 4.00729 0.65601 1.s2437
l0 148.41316 0.00674 221.23651 0.00440 0.65312 1.53 I 11

11 244.69t93 0.00409 37 5.6496't 0.00266 0.65138 1.53519

12 4A3.42879 0.00248 620.34160 0.00161 c.65033 1.:3767
13 665.14163 0.00150 1023.71a$ 0.00098 0.64970 1.53918
14 1096.63316 0.00091 1688.91203 0.00059 0.6493t 1.54009
15 1808.04241 0.00055 2785.545t9 0.00036 0.64908 t.54064
16 2980.95798 0.00034 4593.58760 0.04Q22 0.64894 1.5,1098
t'7 4914.76883 0.00020 7 571.54558 0.00013 0.64885 1.s1t r8
l8 8103.08392 0.00012 12489.31441 0.c0008 0.64880 I .541 30
19 13359.72681 0.00007 20592.39833 0.00005 Q.il81't r.54138
20 22026.46s76 0.00005 31952.t2st4 0.00003 0.64875 1.54t42
"rl
363 15.50261 0.00003 55978.59090 0.00002 0.64874 1.54115
22 59874. l4 r 60 0.00002 92294.093s1 0.00001 0.64873 1.54147
23 98115.'77082 0.0000r 152168.23s I 1 0.00001 0.64813 1.54148
24 162754.79t09 0.00001 250884.005e3 0.00000 0.64813 I .541 ,18
l5 268337.28_s95 0.0c000 413638.79702 0.00000 0.64872 1.5'11,19
:6 _142.11 3.39 I r),+ ().00000 681976.08297 0.00000 0.64812 1.5.1149
27 729-1r 6.36s i I 0.00000 I 12.1389.47401 0.00000 0.618'72 1.54t49
28 1202604.281 r2 (,.00000 18538()-5.8.12t9 0.00000 0.648'12 1.s4149
29 19817-59.25868 0.00000 30-s64 I 0.I 23.52 0.00000 0.61812 1.54149
30 3269011.361t9 0.00000 .5039169.38220 0.00000 0.64872 1.54119

a-