FVIFA is the future value interest factor of ordinary annuity worth $1 that earns i% interest rate for n number of periods. Here me Abraham A. will provide you with a study guide to explain and illustrate future value interest factor of ordinary annuity worth $1.
FVIFA is an acronym for future value interest factor of an ordinary annuity that earns an i% interest rate for n number of periods. The FVIFA may be seen as interest earned on series of periodic end of peiod deposits in amount of $1 that earn compound interest. The compound interest means that the total interest earned by your savings includes the interest on deposits and on the interest itself. The more you increase the compounding frequency of interest the higher the earnings from your investment. The range of compounding frequencies include annual compounding all the way down to the daily compounding and the maximum interest is earned with continuous compounding or what is called infinite compounding of interest. Here I present you a FVIFA document as a Word file that discusses and explores the topic of FVIFA is quite detail explaing the FVIFA through real life lending situations.
Excel FVIFA function in tadXL v2.5
Using tadXL functions such as tadFVIFA finding future value annuity factor in Excel 2007, 2010 and 2013 becomes really easy. Let us now briefly look at this financial functions in tadXL to find FVIFA using Excel: