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what is general annuity formula. FV Ordinary Annuity C 1 i n 1 i where. However if the payment amounts are all equal the formula can.
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The general formula for annuity valuation is. The present value portion of the formula is the initial payout with an example being the original payout on an amortized loan. PMT The amount of each annuity payment.
P PMT 1 - 1 1 rn r Where.
N Total number of periods of annuity payments. Present Value of Annuity is calculated using the formula given below. R Effective interest rate. The future value of an annuity formula assumes that 1.
