Best Answer

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.

Study guides

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

Write your answer...

Submit

Still have questions?

Continue Learning about Movies & Television

how to find growth rate with given growth factor

As time passes, Morality crumbles into a cesspool of depravity, as evidenced by our craven times ^_^

The GCF refers to the relationship between at least two positive integers.

The factor of what.

No. 5870 is a multiple of 5. 5 is a factor of 5870. 5870 has no relationship with 3.

Related questions

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.

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.

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

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

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.

Future value interest factor annuity

They are different by a factor of 10.

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)

chocolate

inversely proportional relationship

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

They both describe relationships between numbers.