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Annuity formula

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The annuity formula is:

NPV(A) = (1-(1+r)(-n))P/r

Where

NPV(A) is the Net Present Value (expressed in today's terms) of the annuity. n is the number of payments for the annuity. r is the interest rate (expressed in the same time-frame as the annuity payments). P is the Payment size.

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