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Present Value Annuity Calculator

Present value, also known as present discounted value, is the value on a given date of a future payment or series of future payments, discounted to reflect the time value of money and other factors such as investment risk. Calculate the present value of annuity through advanced online Present Value of Annuity Calculator.

Present Value (PV) Annuity Calculator

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Years

Table of Contents:

    Formula

    Present value = annuity amount × [1 - (1 / (1 + r)n)] / r

    Where,
    r - Rate of Interest
    n - Number of years

    This financial calculator computes the present value of a series of equal cash flows received in the future - whether annuity, business or real estate.

    Example:
    Calculate the Present Value of Annuity for the given detail:
    Annuity Amount: 100000
    Interest Rate (r): 5
    Number of periods (n): 2

    Solution:
    Apply Formula:
    Present value = annuity amount × [1 - (1 / (1 + r)n)] / r
    Present Value = 100000*[1-(1+0.05)2)]/0.05
    Present value = 185941.04

    Therefore the Present value of Annuity is 185941.04