What Is the Present Value Interest Factor (PVIF)? The present value interest factor (PVIF) is a formula used to estimate the current worth of a sum of money that is to be received at some future date. PVIFs are often presented in the form of a table with values for different time periods and interest
What Is the Present Value Interest Factor of an Annuity? The present value interest factor of an annuity is a factor that can be used to calculate the present value of a series of annuities when it is multiplied by the recurring payment amount. The initial deposit earns interest at the interest rate (r), which perfectly
What Is a Pyrrhic Victory? A Pyrrhic victory is a success that comes with great losses or unacceptable costs. The term may be used to describe a business move that has costs that far exceed its rewards, such as an extravagantly expensive hostile takeover bid. Key Takeaways A Pyrrhic victory comes at an unacceptably high
What Is the Problem Loan Ratio? The problem loan ratio is a ratio in the banking industry that compares the percentage of problem loans to the percentage of sound loans. In the banking and credit markets, a problem loan is one of two things: a commercial loan that is at least 90 days past due
What Are Qualified Adoption Expenses (QAE)? Qualified adoption expenses are the necessary costs paid to adopt a child younger than 18 years of age or any disabled person who requires care. In the United States, qualified adoption expenses (QAE) are those expenses that the Internal Revenue Service (IRS) defines as reasonable and necessary and can
What Is the Qatari Riyal (QAR)? QAR is the currency code for the Qatari riyal, the currency of the State of Qatar which is located along the coast of the Arabian Peninsula. The Qatari riyal is made up of 100 dirhams. The abbreviation for the currency is QR, in English. Riyal is also frequently referred to
What Is a Qualified Domestic Institutional Investor? (QDII) A qualified domestic institutional investor or QDII is an institutional investor that has met certain qualifications to invest in securities outside of their home country. Institutional investors can be organizations or groups of investors that have a significant amount of money available to invest. QDII programs enable
What Is a Qualified Domestic Relations Order (QDRO)? A qualified domestic relations order (QDRO) is a legal document, typically found in a divorce agreement, that recognizes that a spouse, former spouse, child, or other dependent is entitled to receive a predefined portion of the account owner’s retirement plan assets. Key Takeaways A qualified domestic relations
What Are Qualified Exchange Accommodation Arrangements? A qualified exchange accommodation arrangement is a tax strategy where a third party, known as the accommodation party, temporarily holds a real estate investor’s relinquished or replacement property. Qualified exchange accommodation arrangements, while still subjecting investors to strict guidelines for the sale and purchase of like-kind properties, increase flexibility
What Is Public Sector Net Borrowing? Public sector net borrowing is a British term referring to the fiscal deficit. A fiscal deficit is a shortfall in a government’s income compared with its spending. A government that has a fiscal deficit is spending more than it takes in from taxes or trade. Key Takeaways Public sector
