Download annuity calculator for excel

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To be received at the end of each period, then the formula for the present value of an ordinary annuity can be expressed as shown below.PVA Ordinary = P * [1 – (1 + r/n)-t*n] / (r/n)Relevance and Uses of Present Value of Annuity FormulaAlthough the concept of the present value of an annuity is simply another expression of the theory of time value of money, it is an important concept from the perspective of valuation of retirement planning. In fact, it is predominantly used by accountants, actuaries and insurance personnel to calculate the present value of structured future cash flows. It is also useful in the decision – whether a lump sum payment is better than a series of future payments based on the discount rate. Further, the above-mentioned decision is also influenced by the fact that whether the payment is received at the beginning or at the end of each period.Present Value of Annuity Formula CalculatorYou can use the following Present Value of Annuity Calculator PVA = P x [1 -(1 +r/ n)-txn] X [1 +r / n / r / n] =0 x [1 -(1 +0/ 0)-0x0] X [1 +0 / 0 / 0 / 0] = 0 Recommended ArticlesThis has been a guide to Present Value of Annuity Formula. Here we discuss how to calculate Present Value of Annuity along with practical examples. We also provide Present Value of Annuity calculator with downloadable excel template. You may also look at the following articles to learn more –Formula For Future Value of Annuity DueTime Value of Money Formula with CalculatorHow to Calculate Annuity Using Formula?Discount Factor Formula (Examples with Excel Template)Examples of Future Value of an Annuity Formula