Present Value Interest Factor of Annuity
Definition
- A method used in determining the present value of an annuity or a series of annuities. The present value interest factor of annuity can be used to compare a range of scenarios with different values for interest rates and consecutive dollar withdrawals.
Synonyms
annuity value, present annuity value, current annuity value, present value of an annuity, current value of an annuity
Acronyms
PVIFA
Related Terms and Acronyms
- Annuity Consideration — Definition,
- The payment(s) made by an individual in order to accumulate value in an annuity.
- Annuity Factor Method — Definition,
- A way of determining the maximum amount an annuitant can withdraw from an annuity before penalties are applied.
- Annuity Table — Definition,
- A table that can be used to find the future value of an annuity.
- Commissioners' Reserve Valuation Method — Definition,
- A method used to determine the minimum statutory reserves for annuities and insurance products.
- Future Value of an Annuity (FVA) — Acronym,
- The value of an annuity at some future date.
- Life Expectancy Method — Definition,
- A method of calculating the appropriate size of payments in an annuity's income phase by estimating the annuitant's life expectancy.
- Maturity Guarantee — Definition,
- A guarantee that after a certain date a contract, such as a life insurance policy or annuity, will have a minimum dollar value.
