HCF of two numbers

Number of Periods using Present Value of Annuity Calculator

Financial Chemistry Engineering Health More >>

↳

Financial Accounting Banking Business Common Probability Distribution More >>

⤿

Time Value of Money Financial Accounting Capital Budgeting Cash Management More >>

⤿

Present Value Basics of Time Value of Money Future value

✖Present Value of Annuity is the current value of a set of cash flows in the future, given a specified rate of return or discount rate.ⓘ Present Value of Annuity [PVAnnuity]			+10% -10%
✖Cashflow per Period refers to the amount of money that is either received or paid out at regular intervals.ⓘ Cashflow per Period [C_f]			+10% -10%
✖The Rate per Period is the interest rate charged.ⓘ Rate per Period [r]			+10% -10%

✖Total Number of Periods is the total number of compounding periods for the life of the investment.ⓘ Number of Periods using Present Value of Annuity [t]

⎘ Copy

👎

Formula

LaTeX

Reset

👍

Download Present Value Formulas PDF PDF Image

Number of Periods using Present Value of Annuity Solution

STEP 0: Pre-Calculation Summary

Formula Used

Total Number of Periods = ln((1-(Present Value of Annuity/Cashflow per Period))^-1)/ln(1+Rate per Period)
t = ln((1-(PVAnnuity/C_f))^-1)/ln(1+r)
This formula uses 1 Functions, 4 Variables

Functions Used

ln - The natural logarithm, also known as the logarithm to the base e, is the inverse function of the natural exponential function., ln(Number)

Variables Used

Total Number of Periods - Total Number of Periods is the total number of compounding periods for the life of the investment.
Present Value of Annuity - Present Value of Annuity is the current value of a set of cash flows in the future, given a specified rate of return or discount rate.
Cashflow per Period - Cashflow per Period refers to the amount of money that is either received or paid out at regular intervals.
Rate per Period - The Rate per Period is the interest rate charged.

STEP 1: Convert Input(s) to Base Unit

Present Value of Annuity: 1460 --> No Conversion Required
Cashflow per Period: 1500 --> No Conversion Required
Rate per Period: 0.05 --> No Conversion Required

STEP 2: Evaluate Formula

Substituting Input Values in Formula

t = ln((1-(PVAnnuity/C_f))^-1)/ln(1+r) --> ln((1-(1460/1500))^-1)/ln(1+0.05)

Evaluating ... ...

t = 74.2842536948684

STEP 3: Convert Result to Output's Unit

74.2842536948684 --> No Conversion Required

FINAL ANSWER

74.2842536948684 ≈ 74.28425 <-- Total Number of Periods

(Calculation completed in 00.004 seconds)

You are here -

Home » Financial » Financial Accounting » Time Value of Money » Present Value » Number of Periods using Present Value of Annuity

Credits

Created by Keerthika Bathula

Indian Institute of Technology, Indian School of mines, Dhanbad (IIT ISM Dhanbad), Dhanbad

Keerthika Bathula has created this Calculator and 100+ more calculators!

Verified by Vishnu K

BMS College of Engineering (BMSCE), Bangalore

Vishnu K has verified this Calculator and 200+ more calculators!

< Present Value Calculators

Present Value of Future Sum given compounding periods

LaTeX Go Present Value = Future Value/(1+(Rate of Return/Compounding Periods))^(Compounding Periods*Number of Periods)

Present Value of Annuity

LaTeX Go Present Value of Annuity = (Monthly Payment/Interest Rate)*(1-(1/(1+Interest Rate)^Number of Months))

Present Value of Future Sum given Number of Periods

LaTeX Go Present Value = Future Value/exp(Rate of Return*Number of Periods)

Present Value of Future Sum given Total Number of Periods

LaTeX Go Present Value = Future Value/(1+Interest Rate)^Total Number of Periods

Number of Periods using Present Value of Annuity Formula

LaTeX Go

Total Number of Periods = ln((1-(Present Value of Annuity/Cashflow per Period))^-1)/ln(1+Rate per Period)
t = ln((1-(PVAnnuity/C_f))^-1)/ln(1+r)

What is Number of Periods using Present Value of Annuity?

The number of periods using the present value of an annuity refers to the length of time it takes for a series of regular payments, made at a fixed interest rate, to accumulate to a specified present value. This concept is crucial in financial planning and investment analysis, as it helps determine the duration required to achieve a particular financial goal or pay off a debt. By knowing the present value, the annuity payment amount, and the interest rate, individuals and businesses can calculate the number of periods needed to reach their desired financial target. This calculation is essential in areas such as retirement planning, loan repayment schedules, and investment projections, providing a clear timeline for achieving financial objectives.

How to Calculate Number of Periods using Present Value of Annuity?

Number of Periods using Present Value of Annuity calculator uses Total Number of Periods = ln((1-(Present Value of Annuity/Cashflow per Period))^-1)/ln(1+Rate per Period) to calculate the Total Number of Periods, The Number of Periods using Present Value of Annuity formula is defined as the time duration over which regular payments (PMT) at a certain interest rate (r) will accumulate to equal the desired present value (PV). Total Number of Periods is denoted by t symbol.

How to calculate Number of Periods using Present Value of Annuity using this online calculator? To use this online calculator for Number of Periods using Present Value of Annuity, enter Present Value of Annuity (PVAnnuity), Cashflow per Period (C_f) & Rate per Period (r) and hit the calculate button. Here is how the Number of Periods using Present Value of Annuity calculation can be explained with given input values -> 8.938725 = ln((1-(1460/1500))^-1)/ln(1+0.05).

FAQ

What is Number of Periods using Present Value of Annuity?

The Number of Periods using Present Value of Annuity formula is defined as the time duration over which regular payments (PMT) at a certain interest rate (r) will accumulate to equal the desired present value (PV) and is represented as t = ln((1-(PVAnnuity/C_f))^-1)/ln(1+r) or Total Number of Periods = ln((1-(Present Value of Annuity/Cashflow per Period))^-1)/ln(1+Rate per Period). Present Value of Annuity is the current value of a set of cash flows in the future, given a specified rate of return or discount rate, Cashflow per Period refers to the amount of money that is either received or paid out at regular intervals & The Rate per Period is the interest rate charged.

How to calculate Number of Periods using Present Value of Annuity?

The Number of Periods using Present Value of Annuity formula is defined as the time duration over which regular payments (PMT) at a certain interest rate (r) will accumulate to equal the desired present value (PV) is calculated using Total Number of Periods = ln((1-(Present Value of Annuity/Cashflow per Period))^-1)/ln(1+Rate per Period). To calculate Number of Periods using Present Value of Annuity, you need Present Value of Annuity (PVAnnuity), Cashflow per Period (C_f) & Rate per Period (r). With our tool, you need to enter the respective value for Present Value of Annuity, Cashflow per Period & Rate per Period and hit the calculate button. You can also select the units (if any) for Input(s) and the Output as well.

Home

FREE PDFs

🔍 Search