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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Formatting isn’t just for making your spreadsheet pretty. Click OK to apply the formatting rule. For example, we might want to see how the present value changes when both the interest rate and number of periods changes.
FVIFA Calculator – Tool Slick
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. The PVIF is 0. Excel does this repeatedly to fill in the table. For regular annuities this argument is 0, but for annuities due it is 1.
You can also create a one-input data table by specifying only the row or column input cell, but that wouldn’t suit the purpose here. The tables created here are much better than the textbook tables because they overcome a couple of limitations:.
So, the rule will be:. For the second rule we want to apply a border to the right edge of column A, but only those rows that are supposed to be visible in the table. We don’t need to see the contents of E1: F2, so we can hide those cells by setting the font color to white. Our PVIF table will serve as a template for each of the other three tables.
The snippet below shows the formulas that are in the PVIF table from above:. We want to create rules that are based on formulas, so choose the last item in the Rule Type list Use a formula to determine which cells to format.
Since we are building these tables with Excel, we can use its built-in functions PV in this case instead of the mathematical formula. The rest of the table is ffifa in automatically when we use the Data Table command. Did you know that Amazon is offering 6 months of Amazon Prime – free two-day shipping, free movies, and other benefits – to students?
So, essentially what happens in the data table is that Excel will plug numbers into F1 and F2 and then recalculate the formula in A Are you a student? The formula in Tablf is:.
FVIFA Calculator – Calculate Future Value Interest Factor of Annuity
We don’t need to use that setting here, but you should be aware that it exists. We want the period numbers to have two decimal places and to be roughly centered in column A. We will use the following IF statement:. For the final touch, we want to make sure that a user cannot enter data that is unexpected in B1: If you choose, you can set an input message that will popup when the cell is selected, and an error message that is displayed if the user enters a number outside of the allowable range.
Conditional formatting changes the look of a cell or range when certain conditions are met. This tutorial will demonstrate how to create these tables using Excel. The fourth, and final, rule will underline the last visible row, but only in visible columns. To set the custom number format, select A10 and then right click and choose Format Cells.
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.
The key to creating the tables is to understand that they are all based upon the basic time value of money formulas. To test it, change B6 to, say, 10 and make sure that only A AE10 and then call up the dialog box above. For example, we don’t want them to enter a negative interest rate in B1. Note that the underscores add spaces to the number format, and that the right paren at the end is required. To create the data table we need to select A If you change to an annuity due in B7 then, for reference, you should get 1.
Your worksheet should now look like the one below, except for the shading in row In A7 enter “Type” for the type of annuity.
Let’s take care of a couple of simple items first. Let’s set one more custom number format, this time in A The complication is because we want the table to handle both regular annuities and annuities due. AE70 and then yable this rule:. Please note that the actual numbers in F1 and F2 do not matter at all because Excel is going to replace fvira to create the table. That will preserve the data, but it will be invisible because the font color is the same as the background color.
Apply a border to the bottom using the Format button. Choose Decimal from the Allow list, between from the Data list, set the minimum to 0, and the maximum to vfifa.
Virtually every finance textbook has, at the back, a series of tables that contain multipliers that can be used to yable calculate present or future values without the need for a financial calculator.
Click the OK button to apply the custom number format.
Note that we still need slightly different formulas, depending on the type of annuity as described above. The average is 0.
At this point the PVIF table is fully functional. This allows us to enter a formula once, and then it will automatically populate the table based on values in the left column and vvifa row of the table. Notice that the value in A10 has changed to 0. This feature is typically used for sensitivity analysis.