1. Capital equivalence means that under the action of time factors, funds with different absolute values at different time points have the same value.

2. Calculation:

Capital equivalence calculation-that is, using the concept of equivalence, the process of converting the capital at one time point into the equivalent amount at another time point.

capital equivalence means that there is a certain equivalence relationship outside the funds at different times. This equivalence relationship is called capital equivalence. Through capital equivalence calculation, the amount of funds occurring at different times can be converted into the amount of funds occurring at the same time, and then addition and subtraction can be performed.

capital equivalence formula:

1. lump sum final value formula:

where:? Represents the final value,? Represents the present value,? Indicates the time point. Represents the discount rate,? It is called the final value coefficient of one-time payment, usually with symbols? Express.

F=P(1+i)n

2. formula of present value of lump sum:

in the formula? It is called the present value coefficient of one-time payment, usually with symbols? Express.

3. Final value formula of equal payment:

4. Formula of equal payment for sinking fund

5. Formula of equal payment for fund recovery

6. Formula of present value of equal payment

There are three factors that affect the equivalence of funds: the amount, the time when funds occur, and the interest rate (or discount rate).