HOSTING A TOTAL OF 318 FORMULAS WITH CALCULATORS

## Equivalent Annual Annuity

The equivalent annual annuity formula is used in capital budgeting to show the net present value of an investment as a series of equal cash flows for the length of the investment. The net present value(NPV) formula shows the present value of an investment that has uneven cash flows

## $\frac{\frac{r}{p}}{1-\left[1+r{\right]}^{\mathrm{-n}}}$

Here,p=net present value,r=rate per period,n=number of period

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