Cash flows required for the constitution of a capital formula

Tags: placements time value of money

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}{{(1 + i)}^{N} - 1}

Symbols

C

Capital to be constituted

i

Annual interest rate

N

Number of periods (years)

Additional information related to this formula

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