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Earn +20 ptsQ: What effect do interest rates have on the calculation of future and present value How does the length of time affect future and present value How do these two factors correlate?
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What is the formula for Present Value Interest Factor?
Present Value Interest Factor, abbreviated as PVIF and is used to simplify present value computations, may be computed as follows: PVIF = 1 / ( ( 1 + r) ^ t) where... r = interest discount rate t = number of periods
What is a present value calculator?
A present value calculator is a calculator that is used to figure out the future value of something based on constant payments and interest rates. It helps to calculate the present value as well.
What is the present worth of Rupees.132 due in 2 years at 5 percent simple interest per annum?
120
More frequent compounding results in higher future values and lower present values than less frequent compounding at the same interest rate?
Yes
How do you calculate PVIFA using financial calculator?
How to calculate PVIFA, or Present Value Interest Factor of an Annuity, depends on your particular financial calculator. In general, you input the information you have using the Present Value function and the calculator will use factor tables to generate an answer.
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