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
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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.
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.
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.
(Face Value of Note) x (Annual Interest Rate) x (Time in Terms of One Year) = Interest
The formula for the present value of an annuity due. The present value of an annuity due is used to derive the current value of a series of cash payments that are expected to be made on predetermined future dates and in predetermined amounts.