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Principles of Sustainable Energy Systems, Second Edition, 2nd Edition
book

Principles of Sustainable Energy Systems, Second Edition, 2nd Edition

by Frank Kreith, Susan Krumdieck
August 2013
Intermediate to advanced content levelIntermediate to advanced
790 pages
30h 5m
English
CRC Press
Content preview from Principles of Sustainable Energy Systems, Second Edition, 2nd Edition
96 Principles of Sustainable Energy Systems
2.8 Capital Recovery Factor
In many economic analyses, a series of annual or monthly sums is invested or used to pay
off a loan. The series of equal periodic payments necessary to pay off such a loan is deter-
mined as follows. If a sum P
sum
is invested each year at interest rate i, the present worth of
the sum of these payments S is
S
P
i
P
i
P
i
annann ann
=
+
+
+
+
+
+
11 1
23
()()
, (2.15)
or
SP ii
ii
ann
t
=+
()
++
()
++
()
+++
()
−−
−−
11
11
123
The expression in the following brackets is a geometric series with the rst term P
ann
/(1 + i)
and ratio (1 + i)
n
. It follows from the expression for the sum of such a series that ...
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Publisher Resources

ISBN: 9781466556966