Identify the annuity type: the annuity that represents a debt service pattern to recover the initial capital (principal) in equal periodic payments is called what?

Introduction / Context:
Debt service for capital projects is often structured so that a constant payment each period covers both interest and a portion of principal, fully recovering the initial investment over time. In engineering economy, this pattern is captured by the capital recovery annuity and corresponding factor A/P (capital-recovery factor).

Given Data / Assumptions:

• Initial principal (present worth) P is to be recovered over n periods.
• Interest rate i per period applies.
• Equal periodic payment A retiring both interest and principal.

Concept / Approach:
The capital recovery factor converts a present amount P into a uniform series A: A = P * (A/P, i, n). Each payment A consists of interest on the outstanding balance plus principal reduction. By the final period, the principal is fully repaid. This structure underlies loan amortization and lease-equivalent calculations.

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