Calculation of Interest, Principal, and Payments
Examples of how to use the different calculations
Simple Interest
A company borrows $5,000 at 5 percent per annum simple interest. What payment must be made to retire the debt at the end of 8 years?
Compound Interest; Future Value of Single Payment
The sum of $3,000 was deposited in a fund that earned interest at 2 percent compounded quarterly. What was the principal in the fund at the end of 12 quarters?
Present Worth of Single Payment
A deposit was made in a fund that earns interest at 6 percent per annum. Five years later, the principal resulting from this deposit was $23,212. What sum was deposited?
Principal in Sinking Fund
A deposit of $200,000 was made each year for 8 years in a fund earning interest at 6 percent per annum. What was the principal in the fund immediately after the last deposit was made?
Determination of Sinking-Fund Deposit
A company has to repay $100,000 at the end of 6 years. To accumulate this sum, the company will make 6 equal annual deposits in a fund that earns interest at 3 percent, the first deposit being made 1 year after negotiation of the loan. What is the amount of the annual deposit required?
Present Worth of a Uniform Series
What is the present worth of 12 annual payments of $8,000 each?
Capital-Recovery Determination
A company decides to allot $32,000 by making a series of equal payments 4 times a year for 6 years. If the account earned interest at 3 percent compounded quarterly, what is the amount of the periodic payment?
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Oskar Olofsson
Too many consulting companies see "lean" as a goal in itself.
I have never seen it that way but always think that the goal is something else. Often it is about improving productivity, sometimes being able to postpone investments or improving product quality.
What I want to offer is a holistic view where the current situation and goals are clear and where the tools from lean and other effective methods are selected and implemented thoughtfully.
Over the years, I have helped clients such as NCC, ABB, and Kopparbergs Brewery approach a world-class production.
I want to help more companies succeed! What can I do for you?
𝗼𝘀𝗸𝗮𝗿@𝘄𝗰𝗺.𝗻𝘂