1. Education
Send to a Friend via Email

Definition of Annuity Formula

By

Definition: If annuity payments over time are (0,P,P,...P) for n periods, and the constant interest rate r>0, then the net present value to the recipient of the annuity can be calculated by the annuity formula:

NPV(A) = (1-(1+r)-n)P/r(Econterms)

Terms related to Annuity Formula:

About.Com Resources on Annuity Formula:
None

Writing a Term Paper? Here are a few starting points for research on Annuity Formula:

Books on Annuity Formula:
None

Journal Articles on Annuity Formula:
None

©2014 About.com. All rights reserved.