how do pvifs apply to annuities 
the present value interest factor of an annuity pvifa is useful when you are deciding whether to take a lump sum payment now or an annuity payment in future periods using estimated rates of return you can compare the value of the annuity payments to the lump sum the bottom linea present value interest factor pvif is used to simplify a calculation of the time value of a sum of money to be paid in the future it is a formula commonly used in analyzing annuities and is available in table form for reference 