Finding F When Given P: F/P

If an amount of P dollars is invested at a point in time and i% is the interest
rate per period, the amount will grow to a fuure amount of P+P*i*=P(1+*
i*) by the end of one period; by the end of the second period, the amount
will grow to P(1+* i*)(1+ *i*)=P(1+ *i*)^2; at the end of N periods
the amount will grow to F=P(1+ *i*)^N. The quanity (1+* i*)^N is called
the ** single payment compound amount factor**.

The F/P factor converts a **single **cashflow or an equivalent cash flow
in a year **after** it. Another way to think of it is, a F/P factor moves
a cash flow **forward** in time.