Info

Notice that the entry for each period n in Table A.5 is equal to the sum of the entries in Table A.3 up to and including period n. For example, the PVIFA for 4%, three periods as shown in Table A.5, could have been calculated by summing values from Table A.3:

Notice also that for all positive interest rates, PVIFAin for the present value of an annuity is always less than the number of periods.7

7 To find the PVIFAi for an annuity due, look up the PVIFAi n for n - 1 periods, then add 1.0 to this amount to obtain the PVIFAi n for the annuity due. In the example, the PV^ n for a 4%, 3-year annuity due is 1.8861 + 1.0 = 2.8861.

Was this article helpful?

0 0
Sell Your Annuity

Sell Your Annuity

Do you have annuity you dont want? Discover When is it Time to Sell Your Annuity? What can I do? Where can I get the money I need? I have an annuity, but I dont know that I can sell it. Is there a good time to sell my annuity? I already have a home improvement loan, but it was used before the roof needed replacing.

Get My Free Ebook


Post a comment