The present value of a future cash flow represents the amount of money today, which, if invested at a particular interest rate, will grow to the amount of the sum of the future cash flows at that time in the future. Present Value Of Annuity Calculation. Below you will find a common present value of annuity calculation..Three approaches exist to calculate the present or future value of an annuity amount, known as a time value of money calculation.You can use a formula and either a regular or financial calculator to figure out the present value of an ordinary annuity..Where r = R , n = mt where n is the total number of compounding intervals, t is the time or number of periods, and m is the compounding frequency per period t, i = r m where i is the rate per compounding interval n and r is the rate per time unit t..Present Value of an Annuity Calculate Present Value of an Annuity Given the interest rate per time period, number of time periods and payment amount of an annuity you can calculate its present value..
Present Value of Annuities. An annuity is a series of equal payments or receipts that occur at evenlyed intervals. Leases and rental payments are examples. The payments or receipts occur at the end of each period for an ordinary annuity while they occur at the beginning of each period.for an annuity due Present Value of an .The present value of an annuity is the current value of future payments from an annuity, given a specified rate of return or discount rate.