equation illustrates the relationship in between, Financial Accounting

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equation illustrates the relationship in between

Equation illustrates the relationship in between PVA_n, A, K and n. So manipulating this a bit:

We find that

A = PVA_n [(k (1 + k)ⁿ)/((1 +k)ⁿ - 1)]

[(k (1 + k)ⁿ)/((1 +k)ⁿ - 1)] in equation 13 is inverse of PVIFA_k,n and is termed as the capital recovery factor.

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Financial Accounting: equation illustrates the relationship in between

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