Infrastructure Proforma Analysis

NOTE - This table shows you how to do the 6 major financial calculations. The table is "Live" in the sense that if you change the interest rate, all the numbers update. It is based on ANNUAL compounding, so that payments are made once a year.

Examples (all assuming 10%)

Column 1 - Interest. If you want to know whay you have after 10 year of interest at 10%, look at the first column and see the value in row 10. The value there is 2.593742, so multiply your starting amount by 2.593742. $1 would be worth $2.59 after 10 years.

Column 2 - Discounting. There you see that $1 in 10 years is worth $0.385543 now (which is the inverse of 2.593742).

Column 3 -Accumulation. You put the same amount away every year. You calculate how much an IRA will be worth in the future using this method.

Column 4 - Sinking Fund. If you need $1 in 10 years, you need to put $0.057041 away every year. The annual contributions and the interest on the contributions will bring you to $1 at the end of 10 years.

Column 5 - Annuity. If you receive a dollar a year for 10 years, the present value is $6.144567. Note that njo matter how many years you extend theis, the PV does not get larger that $10.

Column 6 - Amortization. If you want to pay off a loan of $1, how much do you need to pay every year? For a 10 year loan, you pay $0.162745 eaach year for 10 years. Note for a $1 loan you wind up paying $1.62745, or $1.00 in principal and $0.62745 in interest. This is how you calculate mortgates (actually - you have to use the monthly version)


If you have monthly payments (eg, a mortgage) then use the Monthly version of the table.