Table 1: F uture Value Interest F actor (F. V. IF.) ($1 at r% for n periods). F. V .. Table 3: Future Value of an Annuity Interest Factor (FVIFA) ($1 per period at r%. n \ r. 1%. 2%. 3%. 4%. 5%. 6%. 7%. 8%. 9%. 10%. 11%. 12%. 13%. 14%. 15%. 16%. 17%. 1. This tutorial demonstrates how to create the PVIF, FVIF, PVIFA, and FVIFA tables using Excel. I use conditional formatting, custom number formatting, data.
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For the text in A9 we need to specify slightly different text depending on the tabpe of annuity. The snippet below shows the formulas that are in the PVIF table from above:. Time value of money tables are very easy to use because they provide a “factor” that is multiplied by a present value, future value, or annuity payment to find the answer.
This flexibility is achieved using standard Excel features such as time value of money functionstwo-input data tables, data validation, and conditional formatting. Are you a student?
FVIFA Calculator – Tool Slick
In A7 enter “Type” for the type of annuity. This will launch the following dialog box:. You can try it yourself: Since we are building these tables with Excel, we can use its built-in functions PV in this case instead of the mathematical formula. So we will simply copy the PVIF worksheet. That will preserve the data, but it will be invisible because the font color is the same as the background color.
But what happens if the interest rate is 3. Again, this is a two-input data table. To test it, change B6 to, say, 10 and make sure that only A The complication is because we want the table to handle both regular annuities and annuities due. Apply a border to the bottom using the Format button. However, we need to clean this up a bit to make it more functional.
Before creating the data table, I should explain the data in E1: We don’t need to see the contents of E1: Note that this does not change the formula or the result, only what appears in the cell. This is where you tell Excel that cell F1 is where to plug in the numbers from the top row of the table the interest rates and that F2 is where to plug in vfifa numbers from the left column the period numbers. K10 have this format.
FVIFA Calculator – Calculate Future Value Interest Factor of Annuity
Exit from the dialog box so that we can start creating new rules. You can see how the rules are created. The third rule will hide everything outside of the visible part of the table as defined by the values in B5: A70 and then create this formatting rule:.
Be sure to click the Create a Copy box at the bottom of the dialog box. Then you have to interpolate because 3. In this section we will see how to apply several different kinds of formatting and data validation rules to make the TVM tables more flexible and functional.
Rather than creating a large table with the PV function repeated over and over again, we will use Excel’s two-input data table feature. We can do this by applying some data validation rules to those cells.
Once we get this working properly, we can simply copy the worksheet and then change the formula that drives the table.
The key to creating the tables is to understand that they are all based upon the basic time value of money formulas. In this case, the table provides a factor that is multiplied by a future value of a lump sum cash flow in order fviga obtain its present value.
Excel does this repeatedly to fill in the table. Table recalculation can be slow for large tables or complicated formulas, so one of Excel’s calculation options is to Automatic Except for Data Yable.
That is the same value that we used for the PVIF in the original example problem above.
To create the data table we need to select A Note that we still need slightly different formulas, depending on the type of annuity as described above. If you change to an annuity due tqble B7 then, for reference, you should get 1.
In recent years these tables have slowly given way to financial calculators, but they are still widely used by some professors and on some professional exams. Choose Decimal from the Allow list, between from the Data list, set the fvufa to 0, and the maximum to 0.
For the final touch, we want to make sure that a user cannot enter data fgifa is unexpected in B1: Click B7 and then the Data Validation button. It can also add to the functionality.