Discussion
Assertion: \( (A/P, i, n) \) equals \( (A/F, i, n) \) plus \( i \). Reason: recovering capital means replacing it and paying interest on it.
Answer: D
The sinking fund part accumulates the capital back and the interest term services it in the meantime, so the two together are exactly what recovery requires. The identity is the quickest way to get one factor from the other.
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