Payment per period (A)
—
- A
- uniform amount per period
- P
- present value
- i
- interest rate per period
- n
- number of periods
Worked example · $5,000 today at 5% over 7 periods is recovered as $864 each one.
Eq.06 · Uniform series
Capital Recovery
Spreads an amount you have now into a level payment each period that fully recovers it, interest included.
A = P · i (1 + i)^n / [(1 + i)^n - 1]