Capital Recovery (Annuity from Present)

Capital Recovery (Annuity from Present)

FI-06
ASPCSPAdvanced

Formula
A = P × [i(1+i)ⁿ] ÷ [(1+i)ⁿ − 1]
When to Use

Calculate the equal annual payment needed to recover a present investment over time. Used for loan payments and ROI analysis.

Symbol Legend
SymbolMeaningUnitNote
AEqual annual payment$
PPresent worth of investment$
iAnnual interest ratedecimal
nNumber of periods

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