# 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

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

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

#### Present Value of an Annuity Due (PVAD)

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

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.