44/3335–8FE Reference Handbook 10.4 · Engineering Economics · F/A

Handbook formula

Uniform-Series Compound Amount (F/A)

Future worth of n end-of-period uniform receipts A. The last A coincides with F (ordinary annuity).

Uniform end-of-period amount
Future worth
Rate per period
Number of payments

Step-by-step solved example

Save $200 at the end of each year for 5 years at 6%. Find F.

P12345An
End-of-period A deposits accumulating to F.
  1. 1. Factor

    (F/A, 6%, 5) = [(1.06)^5 − 1]/0.06 = 5.637.

  2. 2. Future

    F = 200 × 5.637 = $1,127.

Answer: F = $1,127

10 practice questions

0/10 correct

1.(F/A, 10%, 2) equals

2.F of A = $100, i = 10%, n = 2 is

3.If i → 0, F/A approaches

4.A is assumed to occur at

5.(F/A, 8%, 1) equals

6.F/A and A/F are

7.A = $500, i = 0%, n = 4 → F =

8.The F/A factor grows with n

9.Handbook name of [(1+i)^n − 1]/i is

10.Deposits must be equal and equally spaced to use F/A. If not, use