How To Calculate The Present Value of an Annuity



This finance video tutorial explains how to calculate the present value of an annuity. It explains how to calculate the amount of …

47 thoughts on “How To Calculate The Present Value of an Annuity”

  1. Hi , how can i work out the PMT if i have the NPV 43 460, n 5years, i% 20%. Formula please

  2. can u make a video wherein there's no given C but only the overall ammount in 9 years for example

  3. Approximately the same answer. If you run an If function, you'll realize they aren't equal. They deviate at 11dp

  4. DUDE!!! after like 50 hours 2 minutes into this video you made the thing that I could not understand click. The top part of the formulas order

  5. Lets Be Honest. We Came Here Coz The Formula And Solutuon For This Topic Doesnt Make Sense In The Friggin Books.

  6. i love your work you've been helpful
    can i ask a question though is the answer for your second method suppose to be 943.39?

  7. Really bummed to tell you all this, but the question asked in example 1 and the process to solve are different. "Cash Flow" in finance means, the amount of money after all expenses and debt service that is withheld by the investor. Therefore, the "cash flow" amount is removed from the investment. To answer the original question, you simply perform: "6% of what number is $1000?" or 0.06x=1000 so x=1000/0.06 = $16,666.67. So, if invest $16,677.67 and remove the cash flow of 6% every year, I take the $1000 and I still have $16,667.67 in principal that will earn another $1000 the following year. The answer given in the video is the answer to the question: "How much do I need to invest now to achieve a return of $1000 annually for 5 years?" Return, ROI, and cash flow are not the same thing

  8. What formula would I use to solve this? How did they get 119.1616? [Annuity PV factor I=0.09/12; N=25*12] = 119.1616

  9. When I divided 1000 by 1.06 I did not get 949.3962, I got 943.3962. Am I crazy? Because I cannot continue the problem if I am unable to get the same answer as you. Please help, thank you!

  10. How to prepare 2.5 M 0.3 M acetate buffer pH 4.47 using 2 M acetic acid solution and 5 M KOH solution pKa = 4.77

  11. Great video. Do you mind showing how we can find r (the interest rate), if we know PV, C, n and t ?

  12. Thank u so much, ur videos ar really helpful.
    Could u do one on source transformations, i would be grateful

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