Future amount

The amount of the loan is called the principal P. The longer the time for which the money is loaned, the greater the total amount of interest paid. The future amount of the money F is greater than the principal or present worth P. The relationship between F and P depends upon the type of interest used. Table 9-20 is a summary of the nomenclature used in time value of money calculations. 

Future sum Future value Future worth Future amount Principal Present worth Present value Present amount... 

The key idea is to take a present amount P and account for the interest i that will compound over n periods to give some future amount F as follows ... 

In an economic evaluation of a project, it is often necessary to evaluate the present value of funds that will be received at some definite time in the future. The present value (PV) of a future amount can be considered as the present principal at a given rate and compounded to give the actual amount received at a future date. The relationship between the indicated future amount and the present value is determined by a discount factor. Discounting evaluates each year s flow on an equal basis. It does this by means of the discount, or present value factor, and the reciprocal of the compound interest factor (1 -(- i)" with... 

The present value of an annuity (PVA) will be used to reflect future amount of money that has been discounted to reflect its current value, as if it existed today, such as energy cost. The future cash flows of the annuity are discounted at the discount rate, and the higher the discount rate, the lower the present value of the annuity. 

Once production commences, data such as reservoir pressure, cumulative production, GOR, water cut and fluid contact movement are collected, and may be used to history match the simulation model. This entails adjusting the reservoir model to fit the observed data. The updated model may then be used for a more accurate prediction of future performance. This procedure is cyclic, and a full field reservoir simulation model will be updated whenever a significant amount of new data becomes available (say, every two to five years). 

Caffeine. About 3% by weight of the roasted coffee bean is caffeine (16). The second U.S. Department of Agriculture world coffee crop estimate for 1988—1989 was 4.24 x 10 kg (93.3 million 100-lb bags) (102). World coffee consumption was predicted to rise in the foreseeable future at the rate of 1—2% per year and thus the total amount of caffeine and related alkaloids ingested from this source can also be expected to increase. Caffeine and related bases (eg, theophylline) are also found in various teas but, because most of the major producers (India, China, etc) export relatively Htfle of thek crops and keep most for domestic consumption, accurate figures on year-to-year production are more difficult to obtain. Nevertheless, these crops are of significant economic import (103). 

Prices of natural products such as starch, which is produced ia many countries, and guar, which is produced mainly ia India and Pakistan, are affected by unpredictable factors such as the weather. Toward the end of 1991 prices were rising (93) however, ia the future an oversupply might cause a large drop ia prices. Because of the amounts used, starch is usually purchased locally, and pricing fluctuates with local farm prices and conditions. 

The plasticization of PVC accounts for the vast majority of plasticizer sales. However, significant amounts of plasticizers are used in non-PVC polymers and this may become increasingly important in the future. Although PVC stands alone in its abiUty to accept and retain large quantities of commercial plasticizer, effective plasticization of other resins using slightly modified plasticizers may be possible if certain conditions specific to the polymer of interest are met. 

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