# Present value, present value of annuity

What is the relationship between the PVIFi,n (Table 5-4) and the PVIFAi,n (Table 5-8)? What is the PVIFA10%,10yrs? Add up the values of the PVIF10%,n for n = 1, ..., 10. What is this value? Why do these values have the relationship they do?

Please see the attached Tables

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#### Solution Preview

PVIFi means the present value of $ 1 now.That is if we receive $1 after 10 years at the discount rate of 10%, then the value of ...

#### Solution Summary

The solution clearly explains and differentiates the present value of money and the present value of annuity.

$2.19