Q. What is Capital recovery?
sometimes one may be interested to find out the annual amount paid in the order to redeem a loan of a specific amount over a specific period together with the interest at a given rate for that period. for example ; Rs 100000 borrowed today is to be repay in five equal installment payable at the end of each next 5 year in such a way that the interest @ 10% P.A for the entering period is also repaid. The annuity amount in this case can be ascertained.