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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Virtually every finance textbook has, at the back, a series of tables that contain multipliers that can be used to easily calculate present or future values without the need for a financial calculator.
Go to the Number tab and choose the Custom category. Formatting isn’t just for making your spreadsheet pretty. You will now see the following dialog box:.
You can also create a one-input data table by specifying only taable row or column input cell, but that wouldn’t suit the purpose here. Choose Decimal from the Allow list, between from the Data list, set the minimum to 0, and the maximum to 0.
This allows us to enter a formula once, and then it will automatically populate the table based on values in the left column and top row of the table.
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. K10 have this format. For the interest rate we want to allow any decimal number between 0 and 0. If you change B6 to 15, then A But what happens if the interest rate is 3. It can also add to the functionality.
Start by adding some data in row 7. Note that if some of your rules don’t work properly, you can always go back and edit them by choosing Manage Rules from the Conditional Formatting drop-down. 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.
This will provide the user with a drop-down list from which they can choose the type of annuity. Let’s set one more custom number format, this time in A The Table function will display that array in our table area B In this case, the table provides a factor that is multiplied by a future value of a lump sum cash flow in order to obtain its present value.
Then you have to interpolate because 3. This is the area specifically, F1 and F2 where Excel will substitute the values from the top row and left column to get the numbers to paste into the table. Here is a small piece of the FVIF table so that you can be sure that yours is correct:. The PVIF is 0. The snippet below shows the formulas that are in the PVIF table from above:.
Apply a border to the bottom using the Format button.
Apply a format with a border on the right edge only, and set the font to bold. We can do this by applying some data validation rules to those cells. For example, we don’t want them to enter a negative interest rate in B1.
In this section we will see how to apply several different kinds of formatting vvifa data validation rules to make the TVM tables more flexible and functional.
FVIFA Calculator – Calculate Future Value Interest Factor of Annuity
For the final touch, we want to make sure that a user cannot enter data that is unexpected in B1: That will preserve the data, but it will be invisible because the font color is the same as the background color.
The complication is because we want the table to handle both regular annuities and annuities due. The format mask to do that is 0. Are you a student? Note that if you look at the formula bar you will see that the formula is still there.
For the text in A9 we need to specify slightly different text depending on the type of annuity. To set the custom number format, select A10 and then right click and choose Format Cells. As noted, these tables provide a great deal of flexibility. Be sure to tagle the Create a Copy box at the bottom of the dialog box. That is the same value that we used for the PVIF in the original example problem above.
However, we need to clean this up a bit to make it more functional. Note that the PV function is only used in the upper-left corner of the table. Did you know that Amazon is offering 6 months of Amazon Prime – free two-day tablw, free movies, and other benefits – to students?
Click the OK button to apply the custom number format. Only the formatting of the result has been changed. For regular annuities this argument is 0, but for annuities due it is 1. The tables created here are much better than the textbook tables because they overcome a couple of limitations:.