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Present Value of an Annuity

Present Value of an annuity is used to determine the present value of a stream of equal payments. The present value of an annuity formula can also be used to determine the number of payments, the interest rate, and the amount of the recurring payments. Use the present value of an annuity calculator below to solve the formula.

Present Value of an Annuity Definition

Present Value of an Annuity is the present value of a stream of equal payments, where the payment occurs at the end of each period.

Variables

PV=Present Value of the annuity
Pmt=Payment amount
K=Annual interest rate
N=Number of payments

 


Present Value of an Annuity Formula

 

 

 

 

 

 

 

 

 

 

Interest Rate solved by iteration

 

 

 




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