present value interest factor (PVIF)

Definition

A factor used to determine the future discounted rate of a selected value as well as the current value of a particular series for a set number of periods. Due to the simplicity of the formula, present value interest factor is the primary method of calculating present value from a large series of numbers.
The equation for present value interest factor is: PVIF = 1 / (1 + r)t

Where: r = discount interest rate, t = periods

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present value interest factor of annuity (PVIFA) preservation district