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.

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