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The factor \( (P/F, i, n) \) is the reciprocal of

  • A.\( (F/A, i, n) \)
  • B.\( (F/P, i, n) \)
  • C.\( (P/A, i, n) \)
  • D.\( (A/F, i, n) \)

Answer: B

Discounting and compounding a single sum are exact inverses, so the two factors multiply to unity. The series factors pair off in the same way, present worth with capital recovery and compound amount with sinking fund.

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