The capital recovery factor converts
Select one:
a. F into A.
b. P into F.
c. A into P.
d. A into F.
e. P into A.
Ans: P into A.
Explanation
Capital recovery means how much equal amount (A) is to be repaid each year to recover a loan taken at present (P). It means we have to covert P into A.
Thus, option [e] is correct answer.
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