# Present Value of $1 Annuity Table Creator

## Calculator Use

PVIFA calculator. Calculate the present value interest factor of an annuity (PVIFA) and create a table of PVIFA values. Create a printable compound interest table for the present value of an ordinary annuity or present value of an annuity due for payments of $1.

### Present Value of an Annuity Formula

\[ PV=\frac{PMT}{i}\left[1-\frac{1}{(1+i)^n}\right](1+iT) \]where i is the interest rate per period and n is the total number of periods with compounding occurring once per period.

Since the annuity is payments of $1, PMT = $1 and we have

\[ PV=\frac{\$1}{i}\left[1-\frac{1}{(1+i)^n}\right](1+iT) \]T represents the type. (similar to Excel formulas) If payments are at the end of the period it is an ordinary annuity and we set T = 0. If payments are at the beginning of the period it is an annuity due and we set T = 1.

#### Present Value of an Ordinary Annuity (PVOA)

If type is ordinary, T = 0 and the equation reduces to the formula for present value of an ordinary annuity

\[ PVOA=\frac{\$1}{i}\left[1-\frac{1}{(1+i)^n}\right] \]#### Present Value of an Annuity Due (PVAD)

otherwise T = 1 and the equation reduces to the formula for present value of an annuity due

\[ PVAD=\frac{\$1}{i}\left[1-\frac{1}{(1+i)^n}\right](1+i) \]You can then look up the present value interest factor in the table and use this value as a factor in calculating the present value of an annuity, series of payments.

**Cite this content, page or calculator as:**

Furey, Edward "Present Value of $1 Annuity Table"; from *http://www.calculatorsoup.com* - Online Calculator Resource.