How to calculate present and future value of an annuity

May 31st, 2016
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The document provides the formula for calculating present value of an annuity and the future value of an annuity and has worked examples.

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How to calculate present and future value of an annuityPresent value of annuityThe formula below is used to calculate the present value of an annuity. That is, the currentvalue of a stream of equal payments made at regular intervals over a specified time period.1 (1 + ) = () = ,Where = , ,

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