|
|
| Line 1: |
Line 1: |
| A '''capital recovery factor''' is the ratio of a constant [[annuity (finance theory)|annuity]] to the [[present value]] of receiving that annuity for a given length of time. Using an [[interest rate]] ''i'', the capital recovery factor is:
| | They call me Emilia. Years ago he moved to North Dakota and his family members loves it. To gather cash is 1 of the issues I adore most. Supervising is my profession.<br><br>Feel free to visit my website; [http://www.youporntime.com/user/KBiaggini http://www.youporntime.com/user/KBiaggini] |
| | |
| <math> CRF = \frac {i(1+i)^n}{(1+i)^n-1}</math> | |
| | |
| where <math>n</math> is the number of annuities received.<ref>[http://faculty.engineering.ucdavis.edu/jenkins/CBC/Calculator/CalculatorBackground.pdf Calculator by Jenkins at University of California]</ref>
| |
| | |
| This is related to the [[annuity formula]], which gives the present value in terms of the annuity, the interest rate, and the number of annuities.
| |
| | |
| If <math> n = 1</math>, the <math>CRF</math> reduces to <math>1+i</math>. As <math>n \to \infty</math>, the <math>CRF \to i</math>.
| |
| ==References==
| |
| <references/>
| |
| | |
| ==External links==
| |
| [http://www.wolframalpha.com/entities/calculators/capital_recovery_factor_calculator/tq/pq/5l/ Wolfram|Alpha Capital Recovery Factor Calculator]
| |
| | |
| [[Category:Financial ratios]]
| |
Revision as of 01:43, 19 February 2014
They call me Emilia. Years ago he moved to North Dakota and his family members loves it. To gather cash is 1 of the issues I adore most. Supervising is my profession.
Feel free to visit my website; http://www.youporntime.com/user/KBiaggini