Annuity from present value

Input(s)

i_ei \_e: Effective Interest or Discount Rate (fraction)

t\mathrm{t}: Time (year)

PvP_{v}: Annuity from Present Value (currency unit)

Output(s)

AvA_{v}: Annuity from Present Value (currency unit)

Formula(s)

Av=Pv(ie((1+ie)t)((1+ie)t)1)A_{v}=P_{v} *\left(\frac{i_{e} *\left(\left(1+i_{e}\right)^{t}\right)}{\left(\left(1+i_{e}\right)^{t}\right)-1}\right)

Reference(s)

Mian, M. A. 2011. Project Economics and Decision Analysis Volume 1: Deterministic Models, Second Edition. Tulsa, Oklahoma: PennWell Corporation. Chapter 2, Page: 56.


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