Where:

P_k = Total payment including interest, due on the k^th payment date following the prepayment date.

n = Total number of remaining payments dates.

I = The discount rate, in decimals, which shall be the average rate on utility bonds bearing a rating of “Aa” as set forth in that issue of Moody's Public Utility News Reports most recently published prior to the date on which Discounted Present Value is calculated.

D1₁ = Number of days in the i^th payment period that are in a non-leap year (365 day year).

D2_i = Number of days in the i^th payment period that are in a leap year (366 day year).