For example, the present-value formula would be used to determine how much to invest now if you want to guarantee annual payments of $1,000 for 10 years. To achieve a $1,000 annuity payment for 10 ...

Calculating the interest rate using the present value formula can, at first, seem impossible. However, with a little math and some common sense, anyone can quickly calculate an investment's ...

By applying a mathematical formula consisting of ... future value calculation. For the present value, you'll have to make some assumptions about the discount rate. For example, you might consider ...

Or use the Future Value formula: The one-cent difference in these results, $5,525.64 vs. $5,525.63, is due to rounding in the first calculation. Present Value of an Ordinary Annuity In contrast to ...

Below, we can see what the next five months cost at present value, assuming you kept your money in an account earning 5% interest. This is the formula for calculating the PV of an annuity due ...