MONEY
- CAPITAL RECOVERY AS ANNUITY MONEY
- CAPITAL RECOVERY AS ANNUITY
Capital Recovery As Annuity: Recovery of present value will produce equal annuity income at a percentage rate for a period of time in years. The annuity payment is at the end of the year. The present worth of each annuity payment is summed for all the payment periods. This sum is the capital required to achieve the recovery of capital as annuity.
| Capital + Interest - Payment | Interest Rate % | Year | Annuity | Present worth of payment |
| 3790.78+379.08-1000=3169.86 | 10 | 1st | 1000 | 1000 / (1+10/100)^1 = 909.09 |
| 3169.86+316.98-1000=2486.84 | 10 | 2nd | 1000 | 1000 /(1+10/100)^2 = 826.45 |
| 2486.84+248.69-1000=1735.53 | 10 | 3rd | 1000 | 1000 /(1+10/100)^3= 751.31 |
| 1735.53+173.56-1000=909.09 | 10 | 4th | 1000 | 1000 /(1+10/100)^4 = 683.01 |
| 909.09+90.91-1000=0 | 10 | 5th | 1000 | 1000 /(1+10/100)^5 = 620.92 |
| Total Required = 3790.78 |
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Capital Recovery As Annuity Calculator:
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