Manuals/calci/PVIFA

PVIFA (Rate,NumberOfPayments)

where

• $Rate$ is the rate of interest.
• $NumberOfPayments$ is the number of installments.

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

Description

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.

Examples

1. PVIFA(2%,3) = 2.883883272647779
2. PVIFA(13%,20) = 7.024751578064005
3. PVIFA(15%,30) = 6.565979636707436
4. PVIFA(20%,50) = 4.999450575904414

See Also

• PV
• PVIF
• FV

References

• PVIFA

• List of Main Z Functions

• Z3 home