Present Value Annuities (Grade 12 NSC Matric Mathematics): Flashcards

Regular equal payments to repay loan with compound interest

$P = x \cdot \frac{[1 - (1 + i)^{-n}]}{i}$

$x = \frac{P \times i}{[1 - (1 + i)^{-n}]}$

Present value of the annuity

Regular payment amount

Interest rate per period

Number of payment periods

Benchmark rate banks use when lending to public

8.5% per annum

Present value of remaining payments