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Present value annuity factor calculates the current value of future cash flows. The present value factor is used to describe only the current cash flows.

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Q: What is the relationship between present value factor and annuity present value factor?
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What is the relationship between the present value factor and annuity present value factor?

Present value annuity factor calculates the current value of future cash flows. The present value factor is used to describe only the current cash flows.


Is the present value factor the exponent of the future value factor?

The present value factor is the exponent of the future value factor. this is the relationship between Present Value and Future Value.


How is present value annuity factor calculated?

The present value annuity formula is used to simplify the calculation of the current value of an annuity. A table is used where you find the actual dollar amount of the annuity and then this amount is multiplied by a value to get the future value of that same annuity.


What is the formula for PVIFA in Excel?

The PVIFA formula in excel refers to Present Value Interest Factor of Annuity. This is able to be calculated in an excel document.


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.


What is FVIFA useful for?

Future value interest factor annuity


What is the relationship between 0.09 and 0.9?

They are different by a factor of 10.


Why is it important to know the relationship between special product and factor?

chocolate


What is the Relation between power factor and slip?

inversely proportional relationship


What is the relationship between scale factor and perimeter?

It is a strict linear relationship. Double the size, double the perimeter. The area, however, increases by the square of the scale factor.


What is the similarity between factor and multiple?

They both describe relationships between numbers.


When do you use fvif and fvifa?

An Annuity is a series of payments of a fixed amount for a specified number of equal length periods When the FV of an annuity is known, and you need to calculate the value of each payment, or the FVIFA, then: FVIFA = Future Value Interest Factor Annuity FVIFA = ((1 + r)t -1)/r FVA = Future Value of an Annuity FVA = PMT x (FVIFA r, t) * where: PMT = Regular payments r = discount rate - (interest rate of your choosing) t = number of periods (time) of annuity - (number of years for example) When the PV of an annuity is already known, and you need to calculate the value of each payment, or the PVIFA, then: PVIFA = Present Value Interest Factor Annuity PVIFA = ((1/r) - 1/r(1+r)t ) PVA = Present Value of an Annuity PVA = PMT x (PVIFA r, t) * where: PMT = Regular payments r = discount rate - (interest rate of your choosing) t = number of periods (time) of annuity - (number of years for example)