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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<div style="font-size:30px">'''PVIFA (Rate,NumberOfPayments)'''</div><br/> | <div style="font-size:30px">'''PVIFA (Rate,NumberOfPayments)'''</div><br/> | ||
| + | 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. | ||
| + | **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. | ||
| Line 13: | Line 18: | ||
==Examples== | ==Examples== | ||
| + | #PVIFA(2%,3) = 2.883883272647779 | ||
| + | #PVIFA(13%,20) = 7.024751578064005 | ||
| + | #PVIFA(15%,30) = 6.565979636707436 | ||
| + | #PVIFA(20%,50) = 4.999450575904414 | ||
| + | |||
| + | ==Related Videos== | ||
| + | {{#ev:youtube|v=RoWuvgZNwlA|280|center|PVIFA}} | ||
==See Also== | ==See Also== | ||
Latest revision as of 15:22, 22 February 2019
PVIFA (Rate,NumberOfPayments)
where
- is the rate of interest.
- is the number of installments.
- PVIFA() shows the Present Value Interest Factor of Annuity.
is the rate of interest.
is the number of installments.
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:
is the rate of intesrest..
.
- 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