The most unappealing aspect of financial terms is numbers. Numbers is not everyone’s cup of tea. And people shy away from the mere sight and sound of it. Well, good thing a calculator is invented that will spare you from the manual labor of computing yourself so you can focus on what counts, the dollar sign.
No manual pencil pushing. A present value annuity calculator helps you compute the worth of a series of payments that you need to make extending to a desired time. It calculated based on today’s dollar value. To start computing, you need to fill in the blanks first for the annual payment, number of payment periods and the interest rate where the annuity runs on. But before that an understanding of each of the terms is necessary.
- Annual payment or the amount of dollars paid every year
- Payment period or the number of years an annuity is bound to be settled
- Annual interest rate or the percentage of what is expected to be earned from the annuity on a yearly basis
Get the numbers. The calculator presents you two values: present value of an ordinary annuity and the present value of an annuity-due.
- Present value of an ordinary annuity is the amount paid for an annuity by the end of a period payment
- Present value of an annuity-due is the amount paid for an annuity at the start of every payment period
Using a present value annuity calculator is a breeze. There is no more need for a headache pill. Bring the numbers in and keep them coming.
2 Comments so far
Que piensas
Great site, I look forward to coming back to read some more of your work.
This is a really good article and I like your site.
Thanks
Kevin