Difference between revisions of "Manuals/calci/PVIFA"
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==Examples== | ==Examples== | ||
| − | + | #PVIFA(2%,3) = 2.883883272647779 | |
| + | #PVIFA(13%,20) = 7.024751578064005 | ||
| + | #PVIFA(15%,30) = 6.565979636707436 | ||
| + | #PVIFA(20%,50) = 4.999450575904414 | ||
==See Also== | ==See Also== | ||
Revision as of 12:13, 26 March 2018
PVIFA (Rate,NumberOfPayments)
where
- Failed to parse (MathML with SVG or PNG fallback (recommended for modern browsers and accessibility tools): Invalid response ("Math extension cannot connect to Restbase.") from server "https://wikimedia.org/api/rest_v1/":): {\displaystyle Rate } is the rate of interest.
- Failed to parse (MathML with SVG or PNG fallback (recommended for modern browsers and accessibility tools): Invalid response ("Math extension cannot connect to Restbase.") from server "https://wikimedia.org/api/rest_v1/":): {\displaystyle NumberOfPayments} is the number of installments.
PVIFA() shows the Present Value Interest Factor of Annuity.
Description
PVIFA(Rate,NumberOfPayments)
- Failed to parse (MathML with SVG or PNG fallback (recommended for modern browsers and accessibility tools): Invalid response ("Math extension cannot connect to Restbase.") from server "https://wikimedia.org/api/rest_v1/":): {\displaystyle rate} is the rate of intesrest.
- Failed to parse (MathML with SVG or PNG fallback (recommended for modern browsers and accessibility tools): Invalid response ("Math extension cannot connect to Restbase.") from server "https://wikimedia.org/api/rest_v1/":): {\displaystyle NumberOfPayments} 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:
Failed to parse (MathML with SVG or PNG fallback (recommended for modern browsers and accessibility tools): Invalid response ("Math extension cannot connect to Restbase.") from server "https://wikimedia.org/api/rest_v1/":): {\displaystyle PVIFA = \frac{(1 - (1 + r)^-N)}{r}} .
- PVIFA is also a variable used when calculating the present value of an ordinary annuity.
Examples
- PVIFA(2%,3) = 2.883883272647779
- PVIFA(13%,20) = 7.024751578064005
- PVIFA(15%,30) = 6.565979636707436
- PVIFA(20%,50) = 4.999450575904414