Economics Flashcards

1
Q

What’s the formula for ‘true’ cost due to interest over a period of time?

A

True Cost = C/N ((1-(1+i)^N)/i)

where N is the number of years and i = interest rate

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2
Q

What is the formula for PV

A

PV = A ( (1-(1+i)^-n)/i)

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