You can use this present value annuity template for google sheets to calculate the present value of an annuity.
|Name:||Present Value Annuity Template|
|Tags:||Present Value Annuity Template google sheets|
Screenshots of the template:
What is annuity?
An annuity is a financial product that pays out income in regular payments. Annuities can be used for a variety of purposes, including retirement planning, saving for college, and estate planning.
How to calculate the present value of an annuity?
The present value of an annuity is the present value of all future payments from the annuity, discounted at the appropriate interest rate. The present value of an annuity can be calculated using a simple formula:
PV = A / (1 + r)^n
PV = Present value
A = Annual payment
r = Interest rate
n = Number of payments
For example, consider an annuity that pays $10,000 per year for 10 years, with an interest rate of 5%. The present value of this annuity would be:
PV = $10,000 / (1 + 0.05)^10
PV = $10,000 / 1.63
PV = $6,136.71