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The factor \( (P/A, i, n) \) converts

  • A.a future sum into a uniform series
  • B.a uniform series into a present sum
  • C.a present sum into a uniform series
  • D.a uniform series into a future sum

Answer: B

Correct answer: a uniform series into a present sum

\( (P/A, i, n) \) finds P given A, so it converts a uniform series into the single present sum equivalent to it. Its reciprocal, \( (A/P) \), goes the other way and is the capital recovery factor. Every factor has this paired character, which halves the number that need be remembered.

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