Difference between revisions of "Manuals/calci/PVIFA"
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(Created page with "<div style="font-size:30px">'''PVIFA (Rate,NumberOfPayments)'''</div><br/> *<math>Rate </math> is the rate of interest. *<math>NumberOfPayments</math> is the number of instal...") |
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| − | + | =PVIFA (Rate,NumberOfPayments)= | |
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| + | where | ||
*<math>Rate </math> is the rate of interest. | *<math>Rate </math> is the rate of interest. | ||
*<math>NumberOfPayments</math> is the number of installments. | *<math>NumberOfPayments</math> is the number of installments. | ||
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| + | |||
| + | PVIFA() shows the Present Value Interest Factor of Annuity. | ||
==Description== | ==Description== | ||
| − | + | ||
| − | + | ||
| + | PVIFA(Rate,NumberOfPayments) | ||
| + | |||
| + | *<math>rate</math> is the rate of intesrest. | ||
*<math>NumberOfPayments</math> is the number of installments. | *<math>NumberOfPayments</math> 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 present value interest factor of annuity (PVIFA) is a factor which can be used to calculate the present value of a series of annuities. | ||
Revision as of 17:37, 4 January 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)
- 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:
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 PVIFA = \frac{(1 - (1 + r)^-N)}{r}} .
- PVIFA is also a variable used when calculating the present value of an ordinary annuity.