Cash flow · discrete compounding
Watch money move across time.
Six factors convert a cash flow between three shapes: a single amount today, a single amount later, and a level payment every period. Pick a card to run the numbers and see the cash flow draw itself.
● known input
● the value you solve for
$100 today, 5% per period, 7 periods → $141
The six factors
Tap a card to calculate
Eq.01 · Single payment
Compound Amount
Grow one payment today into its future value.
F = P (1 + i)^n Eq.02 · Single payment
Present Worth
Discount a future payment back to today.
P = F (1 + i)^-n Eq.03 · Uniform series
Series Compound Amount
Stack equal deposits into one future total.
F = A [(1 + i)^n - 1] / i Eq.04 · Uniform series
Sinking Fund
Size the deposit that reaches a future target.
A = F · i / [(1 + i)^n - 1] Eq.05 · Uniform series
Series Present Worth
Value a stream of equal payments today.
P = A [(1 + i)^n - 1] / [i (1 + i)^n] Eq.06 · Uniform series
Capital Recovery
Turn money today into equal payments.
A = P · i (1 + i)^n / [(1 + i)^n - 1]