Hi,
Annuity factor in my corporate finance books is like
AF = (1+K)^N-1/K(k+1)^N
and on websites it is showing as
AF = 1-(1+r)^-N/r
Just like R & K denote the discount rate, do both the formulae mean the same?
I did calculations on pen and 1st formula gives 1.73.10, 2nd value gives 1.73
I checked PVAF table its 1.73, I used online PVIFA calculator its 1.73
r=10% and t=2years
Txs.
Great
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