Cash flows required for the constitution of a capital formula
Description of the Cash flows required for the constitution of a capital formula
Formula for the calculation of the amount of a regular series of cash flows required to constitute a capital \( C \) after \( N \) periods and at an interest rate of \( i \).
Formula
\[ a = C \frac{i}{\left(1+i \right)^N-1} \ \]
Symbols
\(C\ \)
Capital to be constituted
\(i\ \)
Annual interest rate
\(N\ \)
Number of periods (years)