How do you Calculate the Value of an Annuity?
An annuity can be valued as a present value or a future value.
You can calculate the present value of an annuity or the future value of an annuity using a formula or on a calculator.
It is important to understand the formula to be able to understand the way to do your calculation.
Here are the basic formula to perform the calculations. Remember calculate the ‘factor’ then times it by the annuity amount.