Present Value Annuity

Present Value Annuity

Present Value Annuity

Annuities are a series of equal payments or receipts that occur at even spaced intervals. There are two types of annuities, one is ordinary annuity: a payment which is received or paid during the end of a period is called ordinary annuity and the other is which occurs during the beginning of a year and is called annuity due.

Present Value of an Ordinary Annuity is the value of a stream of expected or promised future payments that have been discounted to a single equivalent value today. Its important for comparing two separate cash flows that differ in some way.

The formula is
PVoa = PMT[(1-(1/(1+i)n))/i], where PVoa = Present Value of an ordinary annuity

PMT = Amount of each payment, i = Discount Rate Per Period, n = number of Periods

About the Company: HelpWithAssignment.com is an online tutoring company. Our network spans 3 continents and several countries. We offer three kinds of services: Assignment Help, Thesis Help and Online Tuitions for students in their college or University. http://www.helpwithassignment.com/

Leave a comment

Share this post