The present value interest factor of annuity, often written as PVIFA, can be found using the following formula:
PVIFA = [1 – (1+r)-n] / r
where
- r is the interest rate per period
- n is the number of periods
To calculate PVIFA, simply fill in the values below and then click the “Calculate” button.
PVIFA: 7.8869
Explanation:
PVIFA = [1 – (1+r)-n] / r
PVIFA = [1 – (1+0.06)–11] / 0.06
PVIFA = 7.8869
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