ALTERNATIVE MODELS FOR FINDING CUMULATIVE PAID CAPITAL AND REMAINING BALANCE FOR A UNIFORM SERIES OF CASH FLOWS

ABSTRACT The purpose of this paper is to propose models for finding the cumulative amount of paid capital up to a certain point in time for a discrete uniform series of cash flows, and also the unpaid capital amount of a similar series of cash flows. An exponential model for finding the present worth for a series of cash flows that is increasing exponentially is used to find the sum of paid capital. The second model that is used for finding the unpaid capital is developed based on the first model. The major advantages of the first model over the existing models is that it provides a direct tool for finding the cumulative amount of paid capital or unrecovered investment. The proposed models are easy to use since they are independent of finding the amount of the cash flow A. The cumulative paid interest up to a certain point in time can be found by subtracting the total repaid capital from the amount of total paid money up to that point.