## How is PVOA calculated?

The formula for determining the present value of an annuity is PV = dollar amount of an individual annuity payment multiplied by P = PMT * [1 – [ (1 / 1+r)^n] / r] where: P = Present value of your annuity stream. PMT = Dollar amount of each payment. r = Discount or interest rate.

**What is PVOA factor?**

The point where a particular interest rate (i) intersects a particular number of payments (n) is the annuity’s PVOA factor. When you multiply this factor by the annuity’s recurring payment amount, the result is the present value of the annuity.

**How do you calculate an annuity table?**

An annuity table typically has the number of payments on the y-axis and the discount rate on the x-axis. Find both of them for your annuity on the table, and then find the cell where they intersect. Multiply the number in that cell by the amount of money you get each period.

### How much money must you deposit now at 6% interest compounded quarterly in order to be able to withdraw $3000 at the end of each quarter year for two years?

How much money must you deposit now at 6% interest compounded quarterly in order to be able to withdraw $3,000 at the end of each quarter year for two years? Solution: R = 3000, i=0.06/4=0.015, n = 8.

**What annuity over a 10 yr period at 8% interest is most nearly equivalent to a present worth of $100?**

Answer and Explanation: Present worth of $100 annuity over a 10 year period is c. $671.

**What is the difference between an ordinary annuity and an annuity due?**

An annuity due is an annuity with payment due or made at the beginning of the payment interval. In contrast, an ordinary annuity generates payments at the end of the period.

#### What is PVA in finance?

Process Value Analysis (PVA) is the examination of an internal process that businesses undertake to determine if it can be streamlined. PVA looks at what the customer wants and then asks if a step in a process is necessary to achieve that result.

**What is the equivalent rate of 6% compounded semi annually to a rate compounded quarterly?**

Answer and Explanation: 6.045% is the nominal annual rate compounded semi-annually that is equivalent to an annual rate of 6% compounded quarterly.