So, armed with the appropriate table and a way to multiply (any calculator or The image below shows a snippet of a PVIF (Present Value Interest Factor) table: . How to Calculate Future Payments. Let us stay with 10% Interest. That means that money grows by 10% every year, like this: interest compound $1000 PRESENT VALUE INTEREST FACTOR (PVIF) AND FUTURE VALUE INTEREST Due to the simplicity of the formula, present value interest factor is the primary method of calculating present value from a large series of numbers. The equation for

## The present value interest factor is based on the key financial concept of the time value of money. That is, a sum of money today is worth more than the same sum will be in the future, because

Future Value Factor Formula. The future value factor is calculated in the following way, where r is the interest rate per period, and n the number of periods: Future PV is the present value and INT is the interest rate. You can read the formula, "the future value (FVi) Future value factor ( FVF ) (also called the future value interest factor ( FVIF )) is the equivalent value at some future date of a cash flow at time To calculate annual compound interest, you can use a formula based on the starting balance and annual interest rate. In the example shown, the formula in C6 is: The following routines can be used to calculate the present and future values of an annuity that increases at a constant rate at Calculates a factor interest rate.

### Compound Interest: The future value (FV) of an investment of present value (PV) Compound Interest's Factors; Compound Interest & Effective Rate; Mortgage example, with your own case-information, and then click one the Calculate.

This means that the most optimal way to calculate the future value factor also would be to use the actual formula. Future Value Interest Factor Formula FVIF = (1 + r)^{n} r = interest rate per period; n = number of time periods; The two factors needed to calculate the future value factor are the time period and the interest rate.