Manuals/calci/PVIFA
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 (Conversion error. Server ("https://wikimedia.org/api/rest_") reported: "Cannot get mml. Server problem."): {\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