Finance texts often have tables which give the present value factor for an annuity:

PV factor for annuity of for N years at interestr r t t

N

$1 = = ( + ) ∑ 1 1 1 As illustrated below, in Excel these present value factors are created with the PV function:

Use Data Table to create the table in the template above.

Transcribed Image Text:

A B 1 2 r, interest 3 N, number of periods 4 PV factor 5 6 Number of 7 periods 8 9 1 10 2 11 3 12 4 13 5 14 6 15 7 16 8 17 9 18 10 D E ANNUITY TABLE 9% 5 3.8897 PV(B2, B3,-1) 1% F G H K PRESENT VALUE OF AN ANNUITY OF $1 FOR N PERIODS 2% 3% 4% 5% 6% 7% 8% 9% 10%