HCF of two numbers

Present Value Factor Calculator

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Present Value Basics of Time Value of Money Future value

✖The Rate per Period is the interest rate charged.ⓘ Rate per Period [r]			+10% -10%
✖The Number of Periods is the periods on an annuity using the present value, periodic payment, and periodic rate.ⓘ Number of Periods [n_Periods]			+10% -10%

✖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.ⓘ Present Value Factor [F_PVA]

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Present Value Factor Solution

STEP 0: Pre-Calculation Summary

Formula Used

Annuity Present Value Factor = (1-((1+Rate per Period)^(-Number of Periods)))/Rate per Period
F_PVA = (1-((1+r)^(-n_Periods)))/r
This formula uses 3 Variables

Variables Used

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.
Rate per Period - The Rate per Period is the interest rate charged.
Number of Periods - The Number of Periods is the periods on an annuity using the present value, periodic payment, and periodic rate.

STEP 1: Convert Input(s) to Base Unit

Rate per Period: 0.05 --> No Conversion Required
Number of Periods: 2 --> No Conversion Required

STEP 2: Evaluate Formula

Substituting Input Values in Formula

F_PVA = (1-((1+r)^(-n_Periods)))/r --> (1-((1+0.05)^(-2)))/0.05

Evaluating ... ...

F_PVA = 1.859410430839

STEP 3: Convert Result to Output's Unit

1.859410430839 --> No Conversion Required

FINAL ANSWER

1.859410430839 ≈ 1.85941 <-- Annuity Present Value Factor

(Calculation completed in 00.004 seconds)

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Created by Keerthika Bathula

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

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< 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

Present Value Factor Formula

LaTeX Go

Annuity Present Value Factor = (1-((1+Rate per Period)^(-Number of Periods)))/Rate per Period
F_PVA = (1-((1+r)^(-n_Periods)))/r

What is Present Value Factor?

The Present Value Factor, also known as the Present Value of an Annuity factor, is a mathematical value used to calculate the present value of a series of equal periodic payments or receipts. It represents the multiplier by which each payment is discounted to its present value based on a specified interest rate and the number of periods involved. The formula for calculating the present value of an annuity involves multiplying the annuity PV factor by the periodic payment amount. This concept is commonly used in finance for analyzing loans, leases, and other financial arrangements involving regular payments.

How to Calculate Present Value Factor?

Present Value Factor calculator uses Annuity Present Value Factor = (1-((1+Rate per Period)^(-Number of Periods)))/Rate per Period to calculate 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 calculate Present Value Factor using this online calculator? To use this online calculator for Present Value Factor, enter Rate per Period (r) & Number of Periods (n_Periods) and hit the calculate button. Here is how the Present Value Factor calculation can be explained with given input values -> 1.85941 = (1-((1+0.05)^(-2)))/0.05.

FAQ

What is 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 and is represented as F_PVA = (1-((1+r)^(-n_Periods)))/r or Annuity Present Value Factor = (1-((1+Rate per Period)^(-Number of Periods)))/Rate per Period. The Rate per Period is the interest rate charged & The Number of Periods is the periods on an annuity using the present value, periodic payment, and periodic rate.

How to calculate 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 is calculated using Annuity Present Value Factor = (1-((1+Rate per Period)^(-Number of Periods)))/Rate per Period. To calculate Present Value Factor, you need Rate per Period (r) & Number of Periods (n_Periods). With our tool, you need to enter the respective value for Rate per Period & Number of Periods and hit the calculate button. You can also select the units (if any) for Input(s) and the Output as well.

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