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2 - Time Value of Money

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PV of an Annuity Tables

PV of Annuity Tables
PV of an Annuity (Ordinary Annuity) PV of an Annuity (Ordinary Annuity) PV of an Annuity (Ordinary Annuity) PV of an Annuity (Ordinary Annuity)
Periods 1% 2% 3% 4% 5% 6% 7%
1 0.9901 0.9804 0.9709 0.9615 0.9524 0.9434 0.9346
2 1.9704 1.9416 1.9135 1.8861 1.8594 1.8334 1.808
3 2.941 2.8839 2.8286 2.7751 2.7232 2.673 2.6243
4 3.902 3.8077 3.7171 3.6299 3.546 3.4651 3.3872
5 4.8534 4.7135 4.5797 4.4518 4.3295 4.2124 4.1002
6 5.7955 5.6014 5.4172 5.2421 5.0757 4.9173 4.7665
7 6.7282 6.472 6.2303 6.0021 5.7864 5.5824 5.3893
8 7.6517 7.3255 7.0197 6.7327 6.4632 6.2098 5.9713
9 8.566 8.1622 7.7861 7.4353 7.1078 6.8017 6.5152
10 9.4713 8.9826 8.5302 8.1109 7.7217 7.3601 7.0236
11 10.3676 9.7868 9.2526 8.7605 8.3064 7.8869 7.4987
12 11.2551 10.5753 9.954 9.3851 8.8633 8.3838 7.9427
13 12.1337 11.3484 10.635 9.9856 9.3936 8.8527 8.3577
14 13.0037 12.1062 11.2961 10.5631 9.8986 9.295 8.7455
15 13.8651 12.8493 11.9379 11.1184 10.3797 9.7122 9.1079
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Lecture Notes

Like present value and future value compound interest, there's also tables that we can use to check present value of an annuity. Use the formulas from the previous slide to find the present value, and use the table to check your answer.