Capital recovery factor

A capital recovery factor is the ratio of a constant annuity to the present value of receiving that annuity for a given length of time. Using an interest rate i, the capital recovery factor is:

$CRF={\frac {i(1+i)^{n}}{(1+i)^{n}-1}}$

where n is the number of annuities received.^[1]

This is related to the annuity formula, which gives the present value in terms of the annuity, the interest rate, and the number of annuities.

If n = 1, the CRF reduces to 1+i. As n goes to infinity, the CRF goes to i.

==References==http://www.soi.wide.ad.jp/class/20070041/slides/08/18.html

^ Calculator by Jenkins at University of California

CRF= capital recovery factor = [i(1+i)n]/[(1+i)n-1]. This is written wrong on the wikipedia. Please improve this.

[1] Calculator by Jenkins at University of California

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