A series of payments done at certain fixed period of time is called as annuity payment. A factor used to simplify these calculations is called as annuity payment factor which can be calculated using this calculator. The Annuity Payment Factor is the sum of the discount factors for maturities 1 to n inclusive, when the capital cost is equal for all relevant maturities. The factor is also known as the Present Value Interest Factor of an Annuity (PVIFA).
What is the Present Value Interest Factor for an annuity whose rate per period is 10 % for 4 years.
Payment Factor = 10 / (1 - (1 + 10) -4)