Annuity from present value
Input(s)
\(i \_e\): Effective Interest or Discount Rate (fraction)
\(\mathrm{t}\): Time (year)
\(P_{v}\): Annuity from Present Value (currency unit)
Output(s)
\(A_{v}\): Annuity from Present Value (currency unit)
Formula(s)
\[
A_{v}=P_{v} *\left(\frac{i_{e} *\left(\left(1+i_{e}\right)^{t}\right)}{\left(\left(1+i_{e}\right)^{t}\right)-1}\right)
\]
Reference(s)
Mian, M. A. 2011. Project Economics and Decision Analysis Volume 1: Deterministic Models, Second Edition. Tulsa, Oklahoma: PennWell Corporation. Chapter 2, Page: 56.