FormulaDen.com

Physics Chemistry Math Chemical Engineering Civil Electrical Electronics Electronics and Instrumentation Materials Science Mechanical Production Engineering Financial Health

Present Value Factor Formula

Fx Copy

LaTeX Copy

Annuity Present Value Factor is the multiplier used to calculate the present value of a series of equal periodic payments discounted at a specific interest rate over a certain number of periods. Check FAQs

F PVA = \frac{1 - ({(1 + r)}^{- n Periods})}{r}

F_PVA - Annuity Present Value Factor?r - Rate per Period?n_Periods - Number of Periods?

Present Value Factor Example

With values

With units

Only example

Here is how the Present Value Factor equation looks like with Values.

Here is how the Present Value Factor equation looks like with Units.

Here is how the Present Value Factor equation looks like.

1.8594 = \frac{1 - ({(1 + 0.05)}^{- 2})}{0.05}

1.8594 = \frac{1 - ({(1 + 0.05)}^{- 2})}{0.05}

1.8594 = \frac{1 - ({(1 + 0.05)}^{- 2})}{0.05}

Tip: Use pencil ( Pencil

) icon above to edit Input Values and Units.

Calculate

Recalculate

Solution

Copy

Reset

You are here -

Home » Category

Financial » Category

Financial Accounting » Category

Present Value » fx Present Value Factor

Present Value Factor Solution

Follow our step by step solution on how to calculate Present Value Factor?

FIRST Step Consider the formula

F PVA = \frac{1 - ({(1 + r)}^{- n Periods})}{r}

Next Step Substitute values of Variables

∴

F PVA = \frac{1 - ({(1 + 0.05)}^{- 2})}{0.05}

Next Step Prepare to Evaluate

∴

F PVA = \frac{1 - ({(1 + 0.05)}^{- 2})}{0.05}

Next Step Evaluate

∴

F PVA = 1.859410430839

LAST Step Rounding Answer

∴

F PVA = 1.8594

Present Value Factor Formula Elements

Variables

Annuity Present Value Factor

Annuity Present Value Factor is the multiplier used to calculate the present value of a series of equal periodic payments discounted at a specific interest rate over a certain number of periods.

Symbol: F_PVA

Measurement: NAUnit: Unitless

Note: Value should be greater than 0.

Formulas to find Annuity Present Value Factor

Rate per Period

The Rate per Period is the interest rate charged.

Symbol: r

Measurement: NAUnit: Unitless

Note: Value should be greater than 0.

Formulas to find Rate per Period

Number of Periods

The Number of Periods is the periods on an annuity using the present value, periodic payment, and periodic rate.

Symbol: n_Periods

Measurement: NAUnit: Unitless

Note: Value should be greater than 0.

Formulas to find Number of Periods

Other formulas in Present Value category

Go Present Value of Annuity

PVAnnuity = (\frac{p}{IR}) \cdot (1 - (\frac{1}{{(1 + IR)}^{n Months}}))

Go Present Value of Future Sum given compounding periods

PV = \frac{FV}{{(1 + (\frac{%RoR}{C n}))}^{C n \cdot n Periods}}

Go Present Value of Future Sum given Total Number of Periods

PV = \frac{FV}{{(1 + IR)}^{t}}

Go Present Value of Future Sum given Number of Periods

PV = \frac{FV}{\exp (%RoR \cdot n Periods)}

How to Evaluate Present Value Factor?

Present Value Factor evaluator uses Annuity Present Value Factor = (1-((1+Rate per Period)^(-Number of Periods)))/Rate per Period to evaluate the Annuity Present Value Factor, The Present Value Factor is the multiplier used to calculate the present value of a series of equal periodic payments or receipts discounted at a specific interest rate over a certain number of periods. Annuity Present Value Factor is denoted by F_PVA symbol.

How to evaluate Present Value Factor using this online evaluator? To use this online evaluator for Present Value Factor, enter Rate per Period (r) & Number of Periods (n_Periods) and hit the calculate button.

FAQs on Present Value Factor

What is the formula to find Present Value Factor?

The formula of Present Value Factor is expressed as Annuity Present Value Factor = (1-((1+Rate per Period)^(-Number of Periods)))/Rate per Period. Here is an example- 1.85941 = (1-((1+0.05)^(-2)))/0.05.

How to calculate Present Value Factor?

With Rate per Period (r) & Number of Periods (n_Periods) we can find Present Value Factor using the formula - Annuity Present Value Factor = (1-((1+Rate per Period)^(-Number of Periods)))/Rate per Period.

Let Others Know

✖

Facebook

Twitter

Copied!

: Value
: Unit

Present Value Factor Formula

Present Value Factor Example

Present Value Factor Solution

Present Value Factor Formula Elements

Other formulas in Present Value category

How to Evaluate Present Value Factor?

FAQs on Present Value Factor

Variable Name