0įigure 1-4: Uniform Series Compound-Amount Factor, F / A i, n
You want to know how much you will have at the end of year n th. Think of it as this example: you are able to deposit A dollars every year (at the end of the year, starting from year 1) in an imaginary bank account that gives you i percent interest and you can repeat this for n years (depositing A dollars at the end of the year). The following graph shows the amount occurred. This set of problems can be noted as F / A i, n. The third category of problems in Table 1-5 demonstrates the situation that equal amounts of money, A, are invested at each time period for n number of time periods at interest rate of i (given information are A, n, and i) and the future worth (value) of those amounts needs to be calculated.