Present Value Interest Factor (PVIF) is used to calculate the present value per dollar that is received in the future.
EXAMPLE
Suppose you are to receive $7000 in 3 years time, given a current discount interest rate of 11%, the present value will be approximately $5,118.34. If we were to use the PVIF equation above, the interest factor in this calculation will be approximately 0.73119. If we multiply 0.73119 x 7000 we will get $ 5, 118.34.