# 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. ”