Manuals/calci/PVIFA

From ZCubes Wiki
Jump to navigation Jump to search
PVIFA (Rate,NumberOfPayments)


where

  • is the rate of interest.
  • is the number of installments.
    • PVIFA() shows the Present Value Interest Factor of Annuity.

Description

PVIFA(Rate,NumberOfPayments)

  • is the rate of intesrest.
  • is the number of installments.
  • The present value interest factor of annuity (PVIFA) is a factor which can be used to calculate the present value of a series of annuities.
  • The initial deposit earns interest at the periodic rate (r), which perfectly finances a series of (N) consecutive dollar withdrawals and may be written as the following formula:

.

  • PVIFA is also a variable used when calculating the present value of an ordinary annuity.

Examples

  1. PVIFA(2%,3) = 2.883883272647779
  2. PVIFA(13%,20) = 7.024751578064005
  3. PVIFA(15%,30) = 6.565979636707436
  4. PVIFA(20%,50) = 4.999450575904414

Related Videos

PVIFA

See Also

References