Present Value of Ordinary Annuities and Amortization Calculator

✖Payment made in Each Period refers to the regular cash outflow or disbursement of funds that occurs at consistent intervals over a specified period of time.ⓘ Payment made in Each Period [PMT]			+10% -10%
✖The Rate per Period is the interest rate charged.ⓘ Rate per Period [r]			+10% -10%
✖Total Number of Times Compounded refers to the frequency with which interest is calculated and added to the principal amount in a compounding interest scenario.ⓘ Total Number of Times Compounded [n_c]			+10% -10%

✖The Present Value of the annuity is the value that determines the value of a series of future periodic payments at a given time.ⓘ Present Value of Ordinary Annuities and Amortization [PV]

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Present Value of Ordinary Annuities and Amortization

Formula

`"PV" = "PMT"*((1-(1+"r")^(-"n"_{"c"}))/"r")`

Example

`"593.9185"="60"*((1-(1+"0.05")^(-"14"))/"0.05")`

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Present Value of Ordinary Annuities and Amortization Solution

STEP 0: Pre-Calculation Summary

Formula Used

Present Value = Payment made in Each Period*((1-(1+Rate per Period)^(-Total Number of Times Compounded))/Rate per Period)
PV = PMT*((1-(1+r)^(-n_c))/r)
This formula uses 4 Variables

Variables Used

Present Value - The Present Value of the annuity is the value that determines the value of a series of future periodic payments at a given time.
Payment made in Each Period - Payment made in Each Period refers to the regular cash outflow or disbursement of funds that occurs at consistent intervals over a specified period of time.
Rate per Period - The Rate per Period is the interest rate charged.
Total Number of Times Compounded - Total Number of Times Compounded refers to the frequency with which interest is calculated and added to the principal amount in a compounding interest scenario.

STEP 1: Convert Input(s) to Base Unit

Payment made in Each Period: 60 --> No Conversion Required
Rate per Period: 0.05 --> No Conversion Required
Total Number of Times Compounded: 14 --> No Conversion Required

STEP 2: Evaluate Formula

Substituting Input Values in Formula

PV = PMT*((1-(1+r)^(-n_c))/r) --> 60*((1-(1+0.05)^(-14))/0.05)

Evaluating ... ...

PV = 593.918456405378

STEP 3: Convert Result to Output's Unit

593.918456405378 --> No Conversion Required

FINAL ANSWER

593.918456405378 ≈ 593.9185 <-- Present Value

(Calculation completed in 00.004 seconds)

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Created by Vishnu K

BMS College of Engineering (BMSCE), Bangalore

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Satyawati College (DU), New Delhi

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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 Stock with Constant Growth

Go Price of Stock = Estimated Dividends for Next Period/((Rate of Return*0.01)-Growth Rate)

Present Value of Lumpsum

Go Present Value of Lumpsum = Future Value/(1+Interest Rate per Period)^Number of Periods

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 Ordinary Annuities and Amortization Formula

Present Value = Payment made in Each Period*((1-(1+Rate per Period)^(-Total Number of Times Compounded))/Rate per Period)
PV = PMT*((1-(1+r)^(-n_c))/r)

What is Present Value of Ordinary Annuities and Amortization?

The "present value of ordinary annuities" refers to the current value of a series of equal periodic payments or receipts occurring at the end of each period over a specified time frame, discounted back to the present at a given interest rate. This concept is commonly used in financial calculations such as loan amortization, retirement planning, and valuation of investments.
In the context of loan amortization, the present value of an ordinary annuity represents the amount of money that, if invested today at a certain interest rate, would be sufficient to cover all the future payments of the loan.

How to Calculate Present Value of Ordinary Annuities and Amortization?

Present Value of Ordinary Annuities and Amortization calculator uses Present Value = Payment made in Each Period*((1-(1+Rate per Period)^(-Total Number of Times Compounded))/Rate per Period) to calculate the Present Value, The Present Value of Ordinary Annuities and Amortization formula is defined as refers to the current value of a series of equal periodic payments or receipts occurring at the end of each period over a specified time frame, discounted back to the present at a given interest rate. Present Value is denoted by PV symbol.

How to calculate Present Value of Ordinary Annuities and Amortization using this online calculator? To use this online calculator for Present Value of Ordinary Annuities and Amortization, enter Payment made in Each Period (PMT), Rate per Period (r) & Total Number of Times Compounded (n_c) and hit the calculate button. Here is how the Present Value of Ordinary Annuities and Amortization calculation can be explained with given input values -> 212.757 = 60*((1-(1+0.05)^(-14))/0.05).

FAQ

What is Present Value of Ordinary Annuities and Amortization?

The Present Value of Ordinary Annuities and Amortization formula is defined as refers to the current value of a series of equal periodic payments or receipts occurring at the end of each period over a specified time frame, discounted back to the present at a given interest rate and is represented as PV = PMT*((1-(1+r)^(-n_c))/r) or Present Value = Payment made in Each Period*((1-(1+Rate per Period)^(-Total Number of Times Compounded))/Rate per Period). Payment made in Each Period refers to the regular cash outflow or disbursement of funds that occurs at consistent intervals over a specified period of time, The Rate per Period is the interest rate charged & Total Number of Times Compounded refers to the frequency with which interest is calculated and added to the principal amount in a compounding interest scenario.

How to calculate Present Value of Ordinary Annuities and Amortization?

The Present Value of Ordinary Annuities and Amortization formula is defined as refers to the current value of a series of equal periodic payments or receipts occurring at the end of each period over a specified time frame, discounted back to the present at a given interest rate is calculated using Present Value = Payment made in Each Period*((1-(1+Rate per Period)^(-Total Number of Times Compounded))/Rate per Period). To calculate Present Value of Ordinary Annuities and Amortization, you need Payment made in Each Period (PMT), Rate per Period (r) & Total Number of Times Compounded (n_c). With our tool, you need to enter the respective value for Payment made in Each Period, Rate per Period & Total Number of Times Compounded 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?

In this formula, Present Value uses Payment made in Each Period, Rate per Period & Total Number of Times Compounded. We can use 3 other way(s) to calculate the same, which is/are as follows -

Present Value = Future Value/(1+(Rate of Return/Compounding Periods))^(Compounding Periods*Number of Periods)
Present Value = Future Value/(1+Interest Rate)^Total Number of Periods
Present Value = Future Value/exp(Rate of Return*Number of Periods)

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