What are the six functions of a dollar?

Answer 1

1. What will the value of a dollar grow to in n periods at i interest?

(Table #1 = Future value of a dollar)

2. What will a dollar set aside at the beginning of each year accumulate to after n periods at i interest?

(Table #2 = Accumulation of a dollar per period)

3. How much must be set aside in each of n periods at i interest in order to reach a specific sum in the future?

(Table #3 = Sinking fund factor)

4. What is the value today of a dollar received n periods in the future if one's opportunity cost is i?

(Table #4 = Present value of a dollar)

5. What is the value of the right to receive a dollar each of the next n periods if opportunity cost is i?

(Table #5 = Present value of an ordinary annuity)

6. What instalment payment is required to amortize a debt of one dollar over n periods at i interest?

(Table #6 = Installment to amortize a dollar)