Present Value of Annuity Solution

STEP 0: Pre-Calculation Summary
Formula Used
Present Value of Annuity = (Monthly Payment/Interest Rate)*(1-(1/(1+Interest Rate)^Number of Months))
PVAnnuity = (p/IR)*(1-(1/(1+IR)^nMonths))
This formula uses 4 Variables
Variables Used
Present Value of Annuity - Present Value of Annuity is the current value of a set of cash flows in the future, given a specified rate of return or discount rate.
Monthly Payment - The Monthly Payment is the amount a borrower is required to pay each month until a debt is paid off.
Interest Rate - Interest Rate is the amount charged, expressed as a percentage of the principal, by a lender to a borrower for the use of assets.
Number of Months - The Number of Months is the total number of compounding intervals.
STEP 1: Convert Input(s) to Base Unit
Monthly Payment: 28000 --> No Conversion Required
Interest Rate: 5.5 --> No Conversion Required
Number of Months: 13 --> No Conversion Required
STEP 2: Evaluate Formula
Substituting Input Values in Formula
PVAnnuity = (p/IR)*(1-(1/(1+IR)^nMonths)) --> (28000/5.5)*(1-(1/(1+5.5)^13))
Evaluating ... ...
PVAnnuity = 5090.90909077139
STEP 3: Convert Result to Output's Unit
5090.90909077139 --> No Conversion Required
FINAL ANSWER
5090.90909077139 5090.909 <-- Present Value of Annuity
(Calculation completed in 00.004 seconds)

Credits

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19 Present value Calculators

Present Value of Deferred Annuity
Go Present Value of Deferred Annuity = Ordinary Annuity Payment*(1-(1+(Interest Rate*0.01))^-Number of Periods)/((1+(Interest Rate*0.01)^Deferred Periods*(Interest Rate*0.01)))
Present Value of Deferred Annuity based on Annuity Due
Go Present Value of Deferred Annuity = Annuity Payment Due*(1-(1+(Interest Rate*0.01))^-Number of Periods)/((1+(Interest Rate*0.01))^(Deferred Periods-1)*(Interest Rate*0.01))
Present Value of Growing Annuity
Go Present Value of Growing Annuity = (Initial Investment/(Rate per Period-Growth Rate))*(1-((1+Growth Rate)/(1+Rate per Period))^(Number of Periods))
Growing Annuity Payment using Present Value
Go Initial Payment = Present Value*((Rate per Period-Growth Rate)/(1-(((1+Growth Rate)/(1+Rate per Period))^Number of Periods)))
Annuity Due for Present Value
Go Annuity Due Present Value = Payment made in Each Period*((1-(1/(1+Rate per Period)^(Number of Periods)))/Rate per Period)*(1+Rate per Period)
Present Value of Future Sum given compounding periods
Go Present Value = Future Value/(1+(Rate of Return/Compounding Periods))^(Compounding Periods*Number of Periods)
Number of Periods using Present Value of Annuity
Go Total Number of Periods = ln((1-(Present Value of Annuity/Cashflow per Period))^-1)/ln(1+Rate per Period)
Present Value of Ordinary Annuities and Amortization
Go Present Value = Payment made in Each Period*((1-(1+Rate per Period)^(-Total Number of Times Compounded))/Rate per Period)
Present Value of Annuity with Continuous Compounding
Go Present Value of Annuity = Cashflow per Period*((1-e^(-Rate per Period*Number of Periods))/(e^Rate per Period-1))
Present Value of Annuity
Go Present Value of Annuity = (Monthly Payment/Interest Rate)*(1-(1/(1+Interest Rate)^Number of Months))
Present Value of Future Sum given Number of Periods
Go Present Value = Future Value/exp(Rate of Return*Number of Periods)
Present Value for Continuous Compounding
Go Present Value with Continuous Compounding = Future Value/(e^(Rate per Period*Number of Periods))
Present Value Factor
Go Annuity Present Value Factor = (1-((1+Rate per Period)^(-Number of Periods)))/Rate per Period
Present Value of Lumpsum
Go Present Value of Lumpsum = Future Value/(1+Interest Rate per Period)^Number of Periods
Present Value of Stock with Constant Growth
Go Price of Stock = Estimated Dividends for Next Period/(Rate of Return-Growth Rate)
Present Value of Future Sum given Total Number of Periods
Go Present Value = Future Value/(1+Interest Rate)^Total Number of Periods
Present Value Continuous Compounding Factor
Go PV Continuous Compounding Factor = (e^(-Rate per Period*Total Number of Periods))
PV of Perpetuity
Go PV of Perpetuity = Dividend/Discount Rate
Present Value of Stock with Zero Growth
Go Price of Stock = Dividend/Rate of Return

Present Value of Annuity Formula

Present Value of Annuity = (Monthly Payment/Interest Rate)*(1-(1/(1+Interest Rate)^Number of Months))
PVAnnuity = (p/IR)*(1-(1/(1+IR)^nMonths))

How to Calculate Present Value of Annuity?

Present Value of Annuity calculator uses Present Value of Annuity = (Monthly Payment/Interest Rate)*(1-(1/(1+Interest Rate)^Number of Months)) to calculate the Present Value of Annuity, Present Value of Annuity is the current value of a set of cash flows in the future, given a specified rate of return or discount rate. Present Value of Annuity is denoted by PVAnnuity symbol.

How to calculate Present Value of Annuity using this online calculator? To use this online calculator for Present Value of Annuity, enter Monthly Payment (p), Interest Rate (IR) & Number of Months (nMonths) and hit the calculate button. Here is how the Present Value of Annuity calculation can be explained with given input values -> 4666.667 = (28000/5.5)*(1-(1/(1+5.5)^13)).

FAQ

What is Present Value of Annuity?
Present Value of Annuity is the current value of a set of cash flows in the future, given a specified rate of return or discount rate and is represented as PVAnnuity = (p/IR)*(1-(1/(1+IR)^nMonths)) or Present Value of Annuity = (Monthly Payment/Interest Rate)*(1-(1/(1+Interest Rate)^Number of Months)). The Monthly Payment is the amount a borrower is required to pay each month until a debt is paid off, Interest Rate is the amount charged, expressed as a percentage of the principal, by a lender to a borrower for the use of assets & The Number of Months is the total number of compounding intervals.
How to calculate Present Value of Annuity?
Present Value of Annuity is the current value of a set of cash flows in the future, given a specified rate of return or discount rate is calculated using Present Value of Annuity = (Monthly Payment/Interest Rate)*(1-(1/(1+Interest Rate)^Number of Months)). To calculate Present Value of Annuity, you need Monthly Payment (p), Interest Rate (IR) & Number of Months (nMonths). With our tool, you need to enter the respective value for Monthly Payment, Interest Rate & Number of Months and hit the calculate button. You can also select the units (if any) for Input(s) and the Output as well.
How many ways are there to calculate Present Value of Annuity?
In this formula, Present Value of Annuity uses Monthly Payment, Interest Rate & Number of Months. We can use 1 other way(s) to calculate the same, which is/are as follows -
  • Present Value of Annuity = Cashflow per Period*((1-e^(-Rate per Period*Number of Periods))/(e^Rate per Period-1))
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