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Equation illustrates the relationship in between PVAn, A, K and n. So manipulating this a bit:
We find that
A = PVAn [(k (1 + k)n)/((1 +k)n - 1)]
[(k (1 + k)n)/((1 +k)n - 1)] in equation 13 is inverse of PVIFAk,n and is termed as the capital recovery factor.
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how do you figure out to do adjustments
The Brownstone Corporation's bonds have 7 years remaining to maturity. Interest is paid yearly, the bonds have a $1,000 par value, and the coupon interest rate is 10%. a.
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