The process of calculating future values = compounding, ie the sum of beginning amount and the interest earned.
The process of finding out the present value = discounting ie the inverse of compounding.
Basically for a single cash flow:
F = P [F/P, i%, N]
F = P (1+i)N
!!! The following are the cases for discrete compounding and discrete cash flow.
Case 1. Finding F when A is given
F = A [F/A, i%, N]
The quantity inside the square brackets = Uniform series compound factor
Case 2. Finding P when A is given
P = A [P/A, i%, N]
The quantity inside the square brackets = Uniform series present worth factor
Case 3. Finding A when given F
A = F [A/F, i%, N]
The quantity inside the square brackets = Sinking fund factor
Case 4. Finding A when given P
A = P [A/P, i%, N]
The quantity inside the square brackets = Capital recovery factor
