# What is the present value interest factor (PVIF)?

What is the Present Value Interest Factor (PVIF)?

The Present Value Interest Factor (PVIF) is a formula used to calculate the present value of a stream of future payments. What is Pvifa table? Pvifa table is a table which depicts the Present Value Interest Factor of Annuity. This table is used to find the present value of an annuity, given the interest rate and the number of periods. What does Pvifa stand for? PVIFA stands for the "present value of an infinite annuity". It is a formula used to calculate the present value of a stream of payments (an annuity) where the payments continue indefinitely into the future.

##### What is value factor?

A value factor is a characteristic that is associated with stocks that tend to outperform the market. Commonly used value factors include measures of profitability, such as return on equity (ROE), and measures of valuation, such as price-to-book ratio (P/B).

There is no single definition of what constitutes a value stock, and different investors may use different criteria. However, in general, value stocks are those that are trading at a discount to their intrinsic value, or those that have strong fundamentals but are out of favor with investors. How do you calculate PVIF on BA II Plus? 1. Enter the interest rate into the calculator.

2. Press the "PVIF" button.

3. Enter the number of periods.

4. The present value interest factor will be displayed.

#### How do you find PV factor of interest?

The present value (PV) factor of interest is the discount factor that can be used to calculate the present value of a future cash flow. The PV factor is determined by the interest rate, the time period, and the number of compounding periods.

To calculate the PV factor, you can use the following formula:

PV factor = 1 / (1 + r)^n

where r is the interest rate, n is the number of compounding periods, and t is the time period.

For example, if you have a future cash flow of \$100 that will occur in one year, and the interest rate is 10%, then the PV factor would be:

PV factor = 1 / (1 + 0.10)^1 = 0.909

This means that the present value of the cash flow would be \$90.90.