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Present Value of an Annuity Formula, Example, Analysis

Present Value of an Annuity Formula. P V = C × [ 1 − ( 1 + r) − n r] PV = C \times \bigg [ \dfrac {1 - ( 1 + r )^ {-n}} {r}\bigg] PV =C ×[ r1−(1+r)−n. . ] C = cash flow per period. r = interest rate. n = number of periods. Occasionally, you will see that the term interest rate is sometimes referred to as a discount rate when

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