Topic: Present Value Factor Table
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Answers to Common Questions
How to Calculate Present Value Factor
Present factor allows an easy calculation to determine how much money received at a future date is worth now. For example, a person will receive $10,000 in five years and the person wants to know how much the $10,000 is currently worth. Cur... Read More »
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Why do the factors in the present value table never reach 1.00?
Answer Everything is lower than one dollar because you taking the interest out when you are calculating the present value. Read More »
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What is Present Value Factor?
Discount interest rate factor used to determine the present value of a sum in the future. The present value equation is: where: P = present value of a sum in the future (discounted value of R) R = sum of money in the future (accumulated val... Read More »
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More Common Questions
Answers to Other Common Questions
Tables used to determine the present value of a sum in the future by taking into consideration the assumed interest rate and time period involved. See also present value factor .
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Present Value Interest Factor, abbreviated as PVIF and is used to simplify present value computations, may be computed as follows: PVIF = 1 / ( ( 1 + r) ^ t) where... r = interest discount rate t = number of periods
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The Present Value Interest Factor PVIF is used to find the present value of future payments, by discounting them at some specific rate. It decreases the amount. It is always less than one But, the Future Value Interest Factor FVIF is used t...
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Table 4-17
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Future table tables are a component found in Microsoft Excel; Microsoft E...
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What effect do interest rates have on the calculation of future and present value, how does the length of time affect future and present value, how do these two factors correlate.
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Source: http://wiki.answers.com/Q/What_effect_do_interest_rates_have_on_t...
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