The Capital Recovery Factor, given in Equation , converts a single present value ( ) into number of constant annualized values ( ) in the future at discount rate, . For instance, assume a 25 year loan ( ) for $100 is secured at a 9.6% interest rate ( 0.096). In this case, the CRF is 0.107, meaning the debt service will be $10.70 a year for 25 years. The capital recovery factor is sometimes called the fixed charge rate (