When the interest rate is annual, and the period is a year, this is equivalent to the present value of annuity formula. pvif calculator This equation is used in our ...ContentFreePresentValueInterestFactor(pvif)CalculatorPresentValueOfAFutureSumPresentValueInterestFactor(pvif)CalculatorThediscountrateusedinthepresentvalueinterestfactorcalculationapproximatestheexpectedrateofreturnforfutureperiods.Itisadjustedforriskbasedonthedurationoftheannuitypaymentsandtheinvestmentvehicleutilized.Higherinterestratesresultinlowernetpresentvaluecalculations.Thisisbecausethevalueof$1todayisdiminishedifhighreturnsareanticipatedinthefuture.ThePVIFACalculatorisusedtocalculatethepresentvalueinterestfactorofannuity.PVIFAisafactorthatcanbeusedtocalculatethepresentvalueofaseriesofannuities.Usingaconceptcalledpresentvalue,wecandeterminehowmuchacertainamountofmoneyinthefutureisactuallyworthtoday.ThenthepresentvalueofanyfuturedollaramountcanbefiguredbymultiplyinganyspecifiedamountbytheinverseofthePVIFnumber.Inouraboveexample,ifCompanySchoosesthefirstoptionandreceivesthe$1000immediatelyfromCompanyB,thenithastheoptiontoinvestthismoneypvifcalculatorinaninvestmentschemethatprovidesahigherrateofreturn.Thisway,itcanearnextramoneyfromthe$1000ratherthanwaitingforitfortwoyearsandlosingoutontheopportunitycost.Putdifferently,thepresentvalueofmoneyisinverselyproportionaltothetimeperiod.Whentheinterestrateisannual,andtheperiodisayear,thisisequivalenttothepresentvalueofannuityformula.pvifcalculatorThisequationisusedinourpresentvaluecalculatoraswell,soyoucanuseitforcheckingyourPVcalculations.pvif..pviftable..pvifcalculatorpic.twitter.com/TvnOADSTrh—백현이만(@etfactaestb)September16,2019Thistableisaparticularlyusefultoolforcomparingdifferentscenarioswithvariablenandrvalues.Therateisdisplayedacrossthetable’stoprow,whilethefirstcolumnshowsthenumberofperiods.PresentValueFactorFormulaisusedtocalculateapresentvalueofallthefuturevaluetobereceived.Timevalueofmoneyistheconceptthatsaysanamountreceivedtodayismorevaluable