PVIFA calculator. Calculate the present value interest factor of an annuity ( PVIFA ) and create a table of PVIFA values. Create a printable compound interest table for the present value of an ordinary annuity or present value of an annuity due for payments of $1.
where i is the interest rate per period and n is the total number of periods with compounding occurring once per period.
Since the annuity is payments of $1, PMT = $1 and we have
\( PV=\dfrac\left[1-\dfrac\right](1+iT) \)T represents the type. (similar to Excel formulas) If payments are at the end of the period it is an ordinary annuity and we set T = 0. If payments are at the beginning of the period it is an annuity due and we set T = 1.
If type is ordinary, T = 0 and the equation reduces to the formula for present value of an ordinary annuity
\( PVOA=\dfrac\left[1-\dfrac\right] \)otherwise T = 1 and the equation reduces to the formula for present value of an annuity due
\( PVAD=\dfrac\left[1-\dfrac\right](1+i) \)You can then look up the present value interest factor in the table and use this value as a factor in calculating the present value of an annuity, series of payments.