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II. Amortization Factors - Annuities Given Present Values

In some cases, the present value of the cash flows is known and the annuity needs to be estimated. This is often the case with home and automobile loans, for example, where the borrower receives the loan today and pays it back in equal monthly installments over an extended period of time. This process of finding an annuity when the present value is known is examined below -

Annuity given Present Value = A(PV,r,n) = PV

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Sell Your Annuity

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