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Create a printable compound interest table for the present value of an ordinary annuity or annuity due of $1.

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.

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

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