Question
What is annuity factor?

Answer

Annuity refers to series of uniform cash flows at regular intervals. The table value gives the present value of annuity of rupee one received at the end of every year for a specified number of years.
${\operatorname{anuity}}=\frac{ i (1+ i )^{ n }}{(1+ i )_{-1}^{ n }}$
where, $i =$ interest rate $; n =$ estimated number of years

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