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Present Value-Annuity

Last modified by
on
Jul 24, 2020, 6:28:07 PM
Created by
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Jun 30, 2014, 4:31:31 PM
PVA=P⋅(1-(1+r)-nr)
Periodic Payment
Rate per period
Number of Periods
Tags
Finance
UUID
fe40e434-0073-11e4-b7aa-bc764e2038f2

This Present Value Annuity equation formula is used to determine the value of a series of future periodic payments at a given time.

The present value of annuity formula relies on the concept of time value of money, in that a Euro today is worth more than that same Euro at a future date.

  • P= Period payment
  • r = rate of period
  • n= number of periods
This equation, Present Value-Annuity, is used in 3 pages
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