The Present Value of an Ordinary Annuity calculator computes the present value (PV) of a fixed rate annuity based on:
Present Value (PV): The calculator computes the Present Value in U.S. dollars (USD). However, this can be automatically converted into other currency units (e.g. Russian Ruble) via the pull-down menu.
The Present Value of a an Ordinary Annuity formula calculates the current lump-sum value of of a future annuity paid in fixed payments (PMT) based on a fixed interest rate (r) over a number of payments (t). This formula could be used to assess whether to receive a lump sum lottery award or to receive an annuity over time.