present value interest factor of annuity (PVIFA)
Definition
The equation for present value interest factor of annuity is: PVIFA = 1 - (1 + r) - N / r
Where: r = period rate, N = payments or withdrawals
Use this term in a sentence
“ You should try and predict what the PRESENT VALUE INTEREST FACTOR OF ANNUITY will be to know if it is worth trying. ”
“ In order to calculate the present value of the annuity, they needed to factor in the present value interest factor of annuity. ”
“ I wondered what the present value interest factor of annuity was and I thought the manager would be able to figure out what was happening. ”