Again, tables have been worked out for PVIFA,n, the term in parentheses in Equation A.5, as Table A.5 illustrates; a more complete listing is found in Table B.4 in Appendix B. From Table A.5, the PVIFAi n for a 3-year, 4% annuity is found to be 2.7751. Multiplying this factor by the $1,000 annual receipt gives $2,775.10, the present value of the annuity. This figure is identical to the long-method answer shown in Figure A.4:

Was this article helpful?

0 0
Your Retirement Planning Guide

Your Retirement Planning Guide

Don't Blame Us If You End Up Enjoying Your Retired Life Like None Of Your Other Retired Friends. Already Freaked-Out About Your Retirement? Not Having Any Idea As To How You Should Be Planning For It? Started To Doubt If Your Later Years Would Really Be As Golden As They Promised? Fret Not Right Guidance Is Just Around The Corner.

Get My Free Ebook

Post a comment