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Which of the following statements is/are true regarding the capital recovery factor?

Which of the following statements is/are true regarding the capital recovery factor?


I. It is the inverse of the PVIF factor.
II. It represents the amount that has to be invested at the end of every year for a period of ‘n’
years at the rate of interest ‘k’ in order to accumulate Re.1 at the end of the period.
III. It can be applied to find out the amount to be invested periodically to liquidate a loan over a specified period at a given rate of interest.


[A]Only (II) above
[B]Only (III) above
[C]Both (II) and (III) above
[D]Both (I) and (III) above

Dec 28 2017 View more View Less

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