What Does the Equation PV=C(1+i)^n Represent?

[Frizz]

Hi everyone,

Im new to this forum, just saying hi and am curious about something.

Although I done physics at school I haven't dabbled for a number of years now...Anyway, some friends and I were having a dicussion on various topics until physics popped up (2 of them are rather heavy into it). They wrote an equation down and asked if I new what it was...PV=C(1+i)n

I know I've seen it before but can't for the life of me remember it...Can anyone please help?

Physics has sortof peeked my interest again after 17 years so am curious as to what this equation is.

I know this is a maths forum but just thought you guys could help.

Thanks

Frizz

 

[Sartak]

Um, why not ask in the General Physics forum?

 

[Tide]

He's already asked the same question in about 4 forums and got an answer in one but he keeps on posting the question! Here's a clue for Frizz: Post a question only once and be responsible enough to check back. :)

 

[Frizz]

The only reason I posted it twice...not four times, was because the answer I got in the other forum wasn't sufficient...I've tried looking it up myself but can't find it anywhere.

Am getting very curious about it now & am wondering wheather me mates wrote it down right.

Thx anyway.

 

[FredGarvin]

It looks like a calculation for the present value in engineering economics.

 

[prochatz]

Maybe...

I really don't recognise this type, but the first thing came up to my mind was the "Ideal Gas Law" ------> pV=nRT

P:Pressure
V:Volume
n:number of moles
R:universal gas constant
T:Temperature
https://www.physicsforums.com/images/smilies/rolleyes.gif

 

[Integral]

The only thing it has in common with the Ideal gas law is the term PV, put this could just as well be Present Value. When you consider the RHS, Present Value seems a much more likely choice.

 

[BobbyDade]

Actuall, it is close to the Future Value formula. If PV were actually FV (Future formula) then the fomula for the future value is:

FV = C(1+i)^n

where
C = current value
i = interest as decimal (i.e. 10% is .10)
n = number of interest compounding periods (i.e. years).

Note that (1+i) is reaised to the nth power, not multiplied

 

[ZapperZ]

Then it appears that this isn't physics, ya?

Zz.

 

[fasterthanjoao]

Then it appears that this isn't physics, ya?

Zz.

I hope so because I'm not sure what's going on.

 

[Nucleonics]

Then it appears that this isn't physics, ya?

Zz.

Sure it is physics -- everything is just physics when you break it down far enough :)

 

[Frizz]

Thx

Thx for all your help guys. The closest I've come to it is FV=PV(1+i)n something to do with economics. Although it doesn't have the 'C' in it, it's the only thing that comes close.

Thx again

Frizz