Figure 4-1 Illustration of Simple versus Compound Interest

TABLE 4-1 Three Plans for Repayment of $17,000 in Four

Months with Interest at 1% per Month

TABLE 4-1 (continued) Three Plans for Repayment of $17,000 in Four Months with Interest at 1%

per Month

Figure 4-2 Cash-Flow Diagram for Plan 3 of Table 4-1 (Credit Card

Company’s Viewpoint)

Figure 4-3 Cash-Flow Diagram for Plan 2 of Table 4-1 (Lender’s

Viewpoint)

Figure 4-4 Cash-Flow Table, Example 4-2

TABLE 4-2 Discrete Cash-Flow Examples Illustrating Equivalence

TABLE 4-2 (continued) Discrete Cash-Flow Examples Illustrating

Equivalence

Figure 4-6 General Cash-Flow Diagram Relating Uniform Series (Ordinary Annuity) to Its Present Equivalent and Future Equivalent

Values

Figure 4-7 Relationship of Cash Flows for Plan 2 of Table 4-1 to

Repayment of the $17,000 Loan Principal

Figure 4-8 Using Linear Interpolation to Approximate i in

Example 4-13

TABLE 4-3 Discrete Compounding-Interest Factors and

Symbolsa

Figure 4-9 General Cash-Flow Representation of a Deferred

Annuity (Uniform Series)

Figure 4-10 Example 4-16 for Calculating the Equivalent P, F, and

A Values

Figure 4-11 Spreadsheet Solution, Example 4-16

Figure 4-12 Cash-Flow Diagram for Example 4-18

Figure 4-13 Cash-Flow Diagram for a Uniform Gradient Increasing

by G Dollars per Period

Figure 4-14 Breakdown of Cash Flows for Example 4-21

Figure 4-15 Breakdown of Cash Flows for Example 4-22

Figure 4-16 Cash-Flow Diagram for a Geometric Sequence of

Payments Increasing at a Constant Rate of ƒ per Period