## Present Value of Ordinary Annuities

Tags: #Economics### Equation

$$P = R \frac{1 - (1+r)^{-n}}{i} \\ R = P \frac{i}{1 - (1+r)^{-n}}$$### Latex Code

P = R \frac{1 - (1+r)^{-n}}{i} \\ R = P \frac{i}{1 - (1+r)^{-n}}

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### Introduction

#### Equation

#### Latex Code

P = R \frac{1 - (1+r)^{-n}}{i} \\ R = P \frac{i}{1 - (1+r)^{-n}}

#### Explanation

Latex code for the Present Value of Ordinary Annuities. I will briefly introduce the notations in this formulation. The payment is made at the END of the period.

- : Present Value
- : Payment made in each period
- : Rate per period, usually i=r/m
- : Total number of times compounded, n=mt

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