Difference between revisions of "Manuals/calci/PVIFA"

Latest revision as of 15:22, 22 February 2019

PVIFA (Rate,NumberOfPayments)

where

$Rate$ is the rate of interest.
is the number of installments.
- 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.

@@ Line 1: / Line 1: @@
-=PVIFA (Rate,NumberOfPayments)=
+<div style="font-size:30px">'''PVIFA (Rate,NumberOfPayments)'''</div><br/>
 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.
-PVIFA() shows the Present Value Interest Factor of Annuity.
 ==Description==
@@ Line 21: / Line 18: @@
 ==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==