Question
How do you calculate the present value annuity factor fir 8.25 pmt 13 years required return...
how do you calculate the present value annuity factor
fir 8.25 pmt 13 years required return of 11.2
Answers
The present value annuity factor (PVAF) is used to calculate the present value of future one dollar cash flows payment series. It is used for the purpose of simplifying the process of calculating the present value of an annuity.
Formula:
Calculation of PVAF for n= 13 Years and r = 11.2% (i.e. 0.112) & P= 8.25
Answer = $55.13
11-(1+r)-n「1.(1 + 0.11200 ) 13 $8.25 0.11200
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