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Present Value of $1 Annuity Table Creator

Present Value of Annuity Table (PVIFA)

Interest Rates (i) : Columns

Periods (n) : Rows
Answer:
Present Value of an
Ordinary Annuity of $1
\[ PVOA=\frac{\$1}{i}\left[1-\frac{1}{(1+i)^n}\right] \]
n / i
1%
2%
3%
1
0.99010
0.98039
0.97087
2
1.97040
1.94156
1.91347
3
2.94099
2.88388
2.82861
4
3.90197
3.80773
3.71710
5
4.85343
4.71346
4.57971
6
5.79548
5.60143
5.41719
7
6.72819
6.47199
6.23028
8
7.65168
7.32548
7.01969
9
8.56602
8.16224
7.78611
10
9.47130
8.98259
8.53020

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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

\( PV=\dfrac{PMT}{i}\left[1-\dfrac{1}{(1+i)^n}\right](1+iT) \)

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

\( PV=\dfrac{\$1}{i}\left[1-\dfrac{1}{(1+i)^n}\right](1+iT) \)

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

\( PVOA=\dfrac{\$1}{i}\left[1-\dfrac{1}{(1+i)^n}\right] \)

Present Value of an Annuity Due (PVAD)

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

\( PVAD=\dfrac{\$1}{i}\left[1-\dfrac{1}{(1+i)^n}\right](1+i) \)

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.

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