Present Value of Ordinary Annuities
Tags: #EconomicsEquation
$$P = R \frac{1 - (1+r)^{-n}}{i} \\ R = P \frac{i}{1 - (1+r)^{-n}}$$Latex Code
P = R \frac{1 - (1+r)^{-n}}{i} \\
R = P \frac{i}{1 - (1+r)^{-n}}
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Introduction
Equation
Latex Code
P = R \frac{1 - (1+r)^{-n}}{i} \\
R = P \frac{i}{1 - (1+r)^{-n}}
Explanation
Latex code for the Present Value of Ordinary Annuities. I will briefly introduce the notations in this formulation. The payment is made at the END of the period.
: Present Value
: Payment made in each period
: Rate per period, usually i=r/m
: Total number of times compounded, n=mt
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