# Present Value of an Annuity of $1 Table Creator Present Value Annuity Tables Annuity Type: Interest Rate (i) : Columns  Columns (20 max): Starting Rate: % Increments: % Periods (n) : Rows  Rows (50 max): Starting Period: Increments: ## Table Creator Use Create a printable compound interest table for the present value of an ordinary annuity or annuity due of$1.

### Present Value of an Annuity

$PV=\frac{PMT}{i}\left[1-\frac{1}{(1+i)^n}\right](1+iT)$

where i is the interest rate per period and n is the total number of periods with compounding occurring once per period.

Since the annuity is payments of $1, PMT =$1 and we have

$PV=\frac{\1}{i}\left[1-\frac{1}{(1+i)^n}\right](1+iT)$

T represents the type. (similar to Excel formulas) If payments are at the end of the period it is an ordinary annuity and we set T = 0. If payments are at the beginning of the period it is an annuity due and we set T = 1.

#### Present Value of an Ordinary Annuity (PVOA)

If type is ordinary, T = 0 and the equation reduces to the formula for present value of an ordinary annuity

$PVOA=\frac{\1}{i}\left[1-\frac{1}{(1+i)^n}\right]$

#### Present Value of an Annuity Due (PVAD)

otherwise T = 1 and the equation reduces to the formula for present value of an annuity due

$PVAD=\frac{\1}{i}\left[1-\frac{1}{(1+i)^n}\right](1+i)$

You can then look up the present value interest factor in the table and use this value as a factor in calculating the present value of an annuity, series of payments.

Cite this content, page or calculator as:

Furey, Edward "Present Value of an Annuity of \$1 Table Creator" From http://www.CalculatorSoup.com - Online Calculator Resource.