Revision as of 17:37, 4 January 2018

PVIFA (Rate,NumberOfPayments)

where

PVIFA() shows the Present Value Interest Factor of Annuity.

PVIFA(Rate,NumberOfPayments)

$rate$ is the rate of intesrest.
$NumberOfPayments$ 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:

$PVIFA={\frac {(1-(1+r)^{-}N)}{r}}$ .

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

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-<div style="font-size:30px">'''PVIFA (Rate,NumberOfPayments)'''</div><br/>
+=PVIFA (Rate,NumberOfPayments)=
+where
 *<math>Rate </math>  is the rate of interest.
 *<math>NumberOfPayments</math> is the number of installments.
+PVIFA() shows the Present Value Interest Factor of Annuity.
 ==Description==
-*This function shows the Present Value Interest Factor of Annuity.
-*In <math>PVIFA(Rate,NumberOfPayments)</math>,<math>rate</math> is the rate of intesrest.
+PVIFA(Rate,NumberOfPayments)
+*<math>rate</math> is the rate of intesrest.
 *<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.