2527Chemical EngineeringMedium
If an amount R is paid at the end of every year for ‘n’ years, then the net present value of the annuity at an interest rate of i is ________?
AR [{(1 + i)n – 1}/ i (1 + i)n]
BR(1 + i)n
CR [{(1 + i)n – 1}/ i ]
Correct answer
A. R [{(1 + i)n – 1}/ i (1 + i)n]
Explanation
The correct answer is R [{(1 + i)n – 1}/ i (1 + i)n].