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# Present Value Interest Factor (PVIF) Table

The Present Value Interest Factor (PVIF) is an essential financial tool for estimating the current worth of a future sum of money. This tool is grounded in a fundamental financial principle: the time value of money. This principle posits that due to factors like inflation and opportunity cost, the value of a given sum of money is invariably higher now than it will be in the future, assuming the sum remains unchanged. The PVIF is instrumental in converting future cash flows to their present value.

To compute the PVIF, the following formula is employed:

PVIF = 1 / (1 + r)^n

Here’s a breakdown of the formula:

1. PVIF stands for the Present Value Interest Factor. It signifies the worth of every 1 unit of currency today at a future date.
2. ‘r’ denotes the annual interest rate. This rate reflects the cost or return associated with using the money.
3. ‘n’ represents the number of periods, typically measured in years. It indicates the time duration from now until the future payment occurs.

To simplify this calculation, one can utilize a PVIF table. This table presents PVIFs for various combinations of periods (‘n’) and interest rates (‘r’). It enables you to locate the necessary coefficient value swiftly, bypassing the need for intricate mathematical computations.

Here is the complete PVIF Table:

## PVIF Table 1: Interest Rate r = 1%-5%, Number of Periods n = 1-25

 Number of Periods 1% 2% 3% 4% 5% 1 0.9901 0.9804 0.9709 0.9615 0.9524 2 0.9803 0.9612 0.9426 0.9246 0.9070 3 0.9706 0.9423 0.9151 0.8890 0.8638 4 0.9610 0.9238 0.8885 0.8548 0.8227 5 0.9515 0.9057 0.8626 0.8219 0.7835 6 0.9420 0.8880 0.8375 0.7903 0.7462 7 0.9327 0.8706 0.8131 0.7599 0.7107 8 0.9235 0.8535 0.7894 0.7307 0.6768 9 0.9143 0.8368 0.7664 0.7026 0.6446 10 0.9053 0.8203 0.7441 0.6756 0.6139 11 0.8963 0.8043 0.7224 0.6496 0.5847 12 0.8874 0.7885 0.7014 0.6246 0.5568 13 0.8787 0.7730 0.6810 0.6006 0.5303 14 0.8700 0.7579 0.6611 0.5775 0.5051 15 0.8613 0.7430 0.6419 0.5553 0.4810 16 0.8528 0.7284 0.6232 0.5339 0.4581 17 0.8444 0.7142 0.6050 0.5134 0.4363 18 0.8360 0.7002 0.5874 0.4936 0.4155 19 0.8277 0.6864 0.5703 0.4746 0.3957 20 0.8195 0.6730 0.5537 0.4564 0.3769 21 0.8114 0.6598 0.5375 0.4388 0.3589 22 0.8034 0.6468 0.5219 0.4220 0.3418 23 0.7954 0.6342 0.5067 0.4057 0.3256 24 0.7876 0.6217 0.4919 0.3901 0.3101 25 0.7798 0.6095 0.4776 0.3751 0.2953

## PVIF Table 2: Interest Rate r = 1%-5%, Number of Periods n = 26-50

 Number of Periods 1% 2% 3% 4% 5% 26 0.7720 0.5976 0.4637 0.3607 0.2812 27 0.7644 0.5859 0.4502 0.3468 0.2678 28 0.7568 0.5744 0.4371 0.3335 0.2551 29 0.7493 0.5631 0.4243 0.3207 0.2429 30 0.7419 0.5521 0.4120 0.3083 0.2314 31 0.7346 0.5412 0.4000 0.2965 0.2204 32 0.7273 0.5306 0.3883 0.2851 0.2099 33 0.7201 0.5202 0.3770 0.2741 0.1999 34 0.7130 0.5100 0.3660 0.2636 0.1904 35 0.7059 0.5000 0.3554 0.2534 0.1813 36 0.6989 0.4902 0.3450 0.2437 0.1727 37 0.6920 0.4806 0.3350 0.2343 0.1644 38 0.6852 0.4712 0.3252 0.2253 0.1566 39 0.6784 0.4619 0.3158 0.2166 0.1491 40 0.6717 0.4529 0.3066 0.2083 0.1420 41 0.6650 0.4440 0.2976 0.2003 0.1353 42 0.6584 0.4353 0.2890 0.1926 0.1288 43 0.6519 0.4268 0.2805 0.1852 0.1227 44 0.6454 0.4184 0.2724 0.1780 0.1169 45 0.6391 0.4102 0.2644 0.1712 0.1113 46 0.6327 0.4022 0.2567 0.1646 0.1060 47 0.6265 0.3943 0.2493 0.1583 0.1009 48 0.6203 0.3865 0.2420 0.1522 0.0961 49 0.6141 0.3790 0.2350 0.1463 0.0916 50 0.6080 0.3715 0.2281 0.1407 0.0872

## PVIF Table 3: Interest Rate r = 6%-10%, Number of Periods n = 1-25

 Number of Periods 6% 7% 8% 9% 10% 1 0.9434 0.9346 0.9259 0.9174 0.9091 2 0.8900 0.8734 0.8573 0.8417 0.8264 3 0.8396 0.8163 0.7938 0.7722 0.7513 4 0.7921 0.7629 0.7350 0.7084 0.6830 5 0.7473 0.7130 0.6806 0.6499 0.6209 6 0.7050 0.6663 0.6302 0.5963 0.5645 7 0.6651 0.6227 0.5835 0.5470 0.5132 8 0.6274 0.5820 0.5403 0.5019 0.4665 9 0.5919 0.5439 0.5002 0.4604 0.4241 10 0.5584 0.5083 0.4632 0.4224 0.3855 11 0.5268 0.4751 0.4289 0.3875 0.3505 12 0.4970 0.4440 0.3971 0.3555 0.3186 13 0.4688 0.4150 0.3677 0.3262 0.2897 14 0.4423 0.3878 0.3405 0.2992 0.2633 15 0.4173 0.3624 0.3152 0.2745 0.2394 16 0.3936 0.3387 0.2919 0.2519 0.2176 17 0.3714 0.3166 0.2703 0.2311 0.1978 18 0.3503 0.2959 0.2502 0.2120 0.1799 19 0.3305 0.2765 0.2317 0.1945 0.1635 20 0.3118 0.2584 0.2145 0.1784 0.1486 21 0.2942 0.2415 0.1987 0.1637 0.1351 22 0.2775 0.2257 0.1839 0.1502 0.1228 23 0.2618 0.2109 0.1703 0.1378 0.1117 24 0.2470 0.1971 0.1577 0.1264 0.1015 25 0.2330 0.1842 0.1460 0.1160 0.0923

## PVIF Table 4: Interest Rate r = 6%-10%, Number of Periods n = 26-50

 Number of Periods 6% 7% 8% 9% 10% 26 0.2198 0.1722 0.1352 0.1064 0.0839 27 0.2074 0.1609 0.1252 0.0976 0.0763 28 0.1956 0.1504 0.1159 0.0895 0.0693 29 0.1846 0.1406 0.1073 0.0822 0.0630 30 0.1741 0.1314 0.0994 0.0754 0.0573 31 0.1643 0.1228 0.0920 0.0691 0.0521 32 0.1550 0.1147 0.0852 0.0634 0.0474 33 0.1462 0.1072 0.0789 0.0582 0.0431 34 0.1379 0.1002 0.0730 0.0534 0.0391 35 0.1301 0.0937 0.0676 0.0490 0.0356 36 0.1227 0.0875 0.0626 0.0449 0.0323 37 0.1158 0.0818 0.0580 0.0412 0.0294 38 0.1092 0.0765 0.0537 0.0378 0.0267 39 0.1031 0.0715 0.0497 0.0347 0.0243 40 0.0972 0.0668 0.0460 0.0318 0.0221 41 0.0917 0.0624 0.0426 0.0292 0.0201 42 0.0865 0.0583 0.0395 0.0268 0.0183 43 0.0816 0.0545 0.0365 0.0246 0.0166 44 0.0770 0.0509 0.0338 0.0226 0.0151 45 0.0727 0.0476 0.0313 0.0207 0.0137 46 0.0685 0.0445 0.0290 0.0190 0.0125 47 0.0647 0.0416 0.0269 0.0174 0.0113 48 0.0610 0.0389 0.0249 0.0160 0.0103 49 0.0575 0.0363 0.0230 0.0147 0.0094 50 0.0543 0.0339 0.0213 0.0134 0.0085

## PVIF Table 5: Interest Rate r = 11%-15%, Number of Periods n = 1-25

 Number of Periods 11% 12% 13% 14% 15% 1 0.9009 0.8929 0.8850 0.8772 0.8696 2 0.8116 0.7972 0.7831 0.7695 0.7561 3 0.7312 0.7118 0.6931 0.6750 0.6575 4 0.6587 0.6355 0.6133 0.5921 0.5718 5 0.5935 0.5674 0.5428 0.5194 0.4972 6 0.5346 0.5066 0.4803 0.4556 0.4323 7 0.4817 0.4523 0.4251 0.3996 0.3759 8 0.4339 0.4039 0.3762 0.3506 0.3269 9 0.3909 0.3606 0.3329 0.3075 0.2843 10 0.3522 0.3220 0.2946 0.2697 0.2472 11 0.3173 0.2875 0.2607 0.2366 0.2149 12 0.2858 0.2567 0.2307 0.2076 0.1869 13 0.2575 0.2292 0.2042 0.1821 0.1625 14 0.2320 0.2046 0.1807 0.1597 0.1413 15 0.2090 0.1827 0.1599 0.1401 0.1229 16 0.1883 0.1631 0.1415 0.1229 0.1069 17 0.1696 0.1456 0.1252 0.1078 0.0929 18 0.1528 0.1300 0.1108 0.0946 0.0808 19 0.1377 0.1161 0.0981 0.0829 0.0703 20 0.1240 0.1037 0.0868 0.0728 0.0611 21 0.1117 0.0926 0.0768 0.0638 0.0531 22 0.1007 0.0826 0.0680 0.0560 0.0462 23 0.0907 0.0738 0.0601 0.0491 0.0402 24 0.0817 0.0659 0.0532 0.0431 0.0349 25 0.0736 0.0588 0.0471 0.0378 0.0304

## PVIF Table 6: Interest Rate r = 11%-15%, Number of Periods n = 26-50

 Number of Periods 11% 12% 13% 14% 15% 26 0.0663 0.0525 0.0417 0.0331 0.0264 27 0.0597 0.0469 0.0369 0.0291 0.0230 28 0.0538 0.0419 0.0326 0.0255 0.0200 29 0.0485 0.0374 0.0289 0.0224 0.0174 30 0.0437 0.0334 0.0256 0.0196 0.0151 31 0.0394 0.0298 0.0226 0.0172 0.0131 32 0.0355 0.0266 0.0200 0.0151 0.0114 33 0.0319 0.0238 0.0177 0.0132 0.0099 34 0.0288 0.0212 0.0157 0.0116 0.0086 35 0.0259 0.0189 0.0139 0.0102 0.0075 36 0.0234 0.0169 0.0123 0.0089 0.0065 37 0.0210 0.0151 0.0109 0.0078 0.0057 38 0.0190 0.0135 0.0096 0.0069 0.0049 39 0.0171 0.0120 0.0085 0.0060 0.0043 40 0.0154 0.0107 0.0075 0.0053 0.0037 41 0.0139 0.0096 0.0067 0.0046 0.0032 42 0.0125 0.0086 0.0059 0.0041 0.0028 43 0.0112 0.0076 0.0052 0.0036 0.0025 44 0.0101 0.0068 0.0046 0.0031 0.0021 45 0.0091 0.0061 0.0041 0.0027 0.0019 46 0.0082 0.0054 0.0036 0.0024 0.0016 47 0.0074 0.0049 0.0032 0.0021 0.0014 48 0.0067 0.0043 0.0028 0.0019 0.0012 49 0.0060 0.0039 0.0025 0.0016 0.0011 50 0.0054 0.0035 0.0022 0.0014 0.0009

## PVIF Table 7: Interest Rate r = 16%-20%, Number of Periods n = 1-25

 Number of Periods 16% 17% 18% 19% 20% 1 0.8621 0.8547 0.8475 0.8403 0.8333 2 0.7432 0.7305 0.7182 0.7062 0.6944 3 0.6407 0.6244 0.6086 0.5934 0.5787 4 0.5523 0.5337 0.5158 0.4987 0.4823 5 0.4761 0.4561 0.4371 0.4190 0.4019 6 0.4104 0.3898 0.3704 0.3521 0.3349 7 0.3538 0.3332 0.3139 0.2959 0.2791 8 0.3050 0.2848 0.2660 0.2487 0.2326 9 0.2630 0.2434 0.2255 0.2090 0.1938 10 0.2267 0.2080 0.1911 0.1756 0.1615 11 0.1954 0.1778 0.1619 0.1476 0.1346 12 0.1685 0.1520 0.1372 0.1240 0.1122 13 0.1452 0.1299 0.1163 0.1042 0.0935 14 0.1252 0.1110 0.0985 0.0876 0.0779 15 0.1079 0.0949 0.0835 0.0736 0.0649 16 0.0930 0.0811 0.0708 0.0618 0.0541 17 0.0802 0.0693 0.0600 0.0520 0.0451 18 0.0691 0.0592 0.0508 0.0437 0.0376 19 0.0596 0.0506 0.0431 0.0367 0.0313 20 0.0514 0.0433 0.0365 0.0308 0.0261 21 0.0443 0.0370 0.0309 0.0259 0.0217 22 0.0382 0.0316 0.0262 0.0218 0.0181 23 0.0329 0.0270 0.0222 0.0183 0.0151 24 0.0284 0.0231 0.0188 0.0154 0.0126 25 0.0245 0.0197 0.0160 0.0129 0.0105

## PVIF Table 8: Interest Rate r = 16%-20%, Number of Periods n = 26-50

 Number of Periods 16% 17% 18% 19% 20% 26 0.0211 0.0169 0.0135 0.0109 0.0087 27 0.0182 0.0144 0.0115 0.0091 0.0073 28 0.0157 0.0123 0.0097 0.0077 0.0061 29 0.0135 0.0105 0.0082 0.0064 0.0051 30 0.0116 0.0090 0.0070 0.0054 0.0042 31 0.0100 0.0077 0.0059 0.0046 0.0035 32 0.0087 0.0066 0.0050 0.0038 0.0029 33 0.0075 0.0056 0.0042 0.0032 0.0024 34 0.0064 0.0048 0.0036 0.0027 0.0020 35 0.0055 0.0041 0.0030 0.0023 0.0017 36 0.0048 0.0035 0.0026 0.0019 0.0014 37 0.0041 0.0030 0.0022 0.0016 0.0012 38 0.0036 0.0026 0.0019 0.0013 0.0010 39 0.0031 0.0022 0.0016 0.0011 0.0008 40 0.0026 0.0019 0.0013 0.0010 0.0007 41 0.0023 0.0016 0.0011 0.0008 0.0006 42 0.0020 0.0014 0.0010 0.0007 0.0005 43 0.0017 0.0012 0.0008 0.0006 0.0004 44 0.0015 0.0010 0.0007 0.0005 0.0003 45 0.0013 0.0009 0.0006 0.0004 0.0003 46 0.0011 0.0007 0.0005 0.0003 0.0002 47 0.0009 0.0006 0.0004 0.0003 0.0002 48 0.0008 0.0005 0.0004 0.0002 0.0002 49 0.0007 0.0005 0.0003 0.0002 0.0001 50 0.0006 0.0004 0.0003 0.0002 0.0001

## PVIF Table 9: Interest Rate r = 21%-25%, Number of Periods n = 1-25

 Number of Periods 21% 22% 23% 24% 25% 1 0.8264 0.8197 0.8130 0.8065 0.8000 2 0.6830 0.6719 0.6610 0.6504 0.6400 3 0.5645 0.5507 0.5374 0.5245 0.5120 4 0.4665 0.4514 0.4369 0.4230 0.4096 5 0.3855 0.3700 0.3552 0.3411 0.3277 6 0.3186 0.3033 0.2888 0.2751 0.2621 7 0.2633 0.2486 0.2348 0.2218 0.2097 8 0.2176 0.2038 0.1909 0.1789 0.1678 9 0.1799 0.1670 0.1552 0.1443 0.1342 10 0.1486 0.1369 0.1262 0.1164 0.1074 11 0.1228 0.1122 0.1026 0.0938 0.0859 12 0.1015 0.0920 0.0834 0.0757 0.0687 13 0.0839 0.0754 0.0678 0.0610 0.0550 14 0.0693 0.0618 0.0551 0.0492 0.0440 15 0.0573 0.0507 0.0448 0.0397 0.0352 16 0.0474 0.0415 0.0364 0.0320 0.0281 17 0.0391 0.0340 0.0296 0.0258 0.0225 18 0.0323 0.0279 0.0241 0.0208 0.0180 19 0.0267 0.0229 0.0196 0.0168 0.0144 20 0.0221 0.0187 0.0159 0.0135 0.0115 21 0.0183 0.0154 0.0129 0.0109 0.0092 22 0.0151 0.0126 0.0105 0.0088 0.0074 23 0.0125 0.0103 0.0086 0.0071 0.0059 24 0.0103 0.0085 0.0070 0.0057 0.0047 25 0.0085 0.0069 0.0057 0.0046 0.0038

## PVIF Table 10: Interest Rate r = 21%-25%, Number of Periods n = 26-50

 Number of Periods 21% 22% 23% 24% 25% 26 0.0070 0.0057 0.0046 0.0037 0.0030 27 0.0058 0.0047 0.0037 0.0030 0.0024 28 0.0048 0.0038 0.0030 0.0024 0.0019 29 0.0040 0.0031 0.0025 0.0020 0.0015 30 0.0033 0.0026 0.0020 0.0016 0.0012 31 0.0027 0.0021 0.0016 0.0013 0.0010 32 0.0022 0.0017 0.0013 0.0010 0.0008 33 0.0019 0.0014 0.0011 0.0008 0.0006 34 0.0015 0.0012 0.0009 0.0007 0.0005 35 0.0013 0.0009 0.0007 0.0005 0.0004 36 0.0010 0.0008 0.0006 0.0004 0.0003 37 0.0009 0.0006 0.0005 0.0003 0.0003 38 0.0007 0.0005 0.0004 0.0003 0.0002 39 0.0006 0.0004 0.0003 0.0002 0.0002 40 0.0005 0.0004 0.0003 0.0002 0.0001 41 0.0004 0.0003 0.0002 0.0001 0.0001 42 0.0003 0.0002 0.0002 0.0001 0.0001 43 0.0003 0.0002 0.0001 0.0001 0.0001 44 0.0002 0.0002 0.0001 0.0001 0.0001 45 0.0002 0.0001 0.0001 0.0001 0.0000 46 0.0002 0.0001 0.0001 0.0001 0.0000 47 0.0001 0.0001 0.0001 0.0000 0.0000 48 0.0001 0.0001 0.0000 0.0000 0.0000 49 0.0001 0.0001 0.0000 0.0000 0.0000 50 0.0001 0.0000 0.0000 0.0000 0.0000

## PVIF Table Use Case

Imagine you have an opportunity to receive 1000 dollars in 5 years. To determine the present worth of this amount today, you would use the Present Value Interest Factor (PVIF).

First, you need to identify the applicable annual interest rate. Let’s consider it to be 5%. By consulting a PVIF table, where you locate the intersection of n (the number of years, which is 5 in our example) and r (the interest rate of 5%), you find the corresponding PVIF. For n=5 and r=5%, the PVIF is 0.7835. This figure represents the present value of each dollar due in 5 years.

Thus, to calculate the present value of 1000 dollars expected in 5 years, multiply 1000 by the PVIF of 0.7835. The calculation would be 1000 × 0.7835, equating to approximately 783.5 dollars.

This example demonstrates the practical application of the PVIF. It is a valuable tool for understanding the value of future monetary amounts in today’s terms, an essential aspect of financial planning and decision-making.

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