Present Value Annuity Factor Table

For example an individual is wanting to calculate the present value of a series of 500 annual payments for 5 years based on a 5 rate.

Present value annuity factor table. Present value table. The annuity table contains a factor specific to the number of payments over which you expect to receive a series of equal payments and at a certain discount rate. The present value of an annuity is the current value of future payments from that annuity given a specified rate of return or discount rate. This is the present value per dollar received per year for 5 years at 5.

When you multiply this factor by one of the payments you arrive at the present value of the. Present value and future value tables table a 1 future value interest factors for one dollar compounded at k percent for n periods. Present value of 1 that is where r interest rate. Fvifa k n 1 k.

1 r n periods interest rates r n. Present value annuity tables download. Therefore 500 can then be. By looking at a present value annuity factor table the annuity factor for 5 years and 5 rate is 4 3295.

N number of periods until payment or receipt. A method for determining the present value of a structured series of payments. The annuity table provides a factor based on time and a discount rate by which an annuity payment. Table a 2 future value interest factors for a one dollar annuity compouned at k percent for n periods.