LCM of three numbers

Present Value of Ordinary Annuities and Amortization Calculator

Financial Chemistry Engineering Health More >>

↳

Financial Accounting Banking Business Common Probability Distribution More >>

⤿

Time Value of Money Financial Accounting Capital Budgeting Cash Management More >>

⤿

Present Value Basics of Time Value of Money Future value

✖Payment made in Each Period refers to the regular cash outflow or disbursement of funds that occurs at consistent intervals over a specified period of time.ⓘ Payment made in Each Period [PMT]			+10% -10%
✖The Rate per Period is the interest rate charged.ⓘ Rate per Period [r]			+10% -10%
✖Total Number of Times Compounded refers to the frequency with which interest is calculated and added to the principal amount in a compounding interest scenario.ⓘ Total Number of Times Compounded [n_c]			+10% -10%

✖The Present Value of the annuity is the value that determines the value of a series of future periodic payments at a given time.ⓘ Present Value of Ordinary Annuities and Amortization [PV]

⎘ Copy

👎

Formula

LaTeX

Reset

👍

Download Present Value Formulas PDF PDF Image

Present Value of Ordinary Annuities and Amortization Solution

STEP 0: Pre-Calculation Summary

Formula Used

Present Value = Payment made in Each Period*((1-(1+Rate per Period)^(-Total Number of Times Compounded))/Rate per Period)
PV = PMT*((1-(1+r)^(-n_c))/r)
This formula uses 4 Variables

Variables Used

Present Value - The Present Value of the annuity is the value that determines the value of a series of future periodic payments at a given time.
Payment made in Each Period - Payment made in Each Period refers to the regular cash outflow or disbursement of funds that occurs at consistent intervals over a specified period of time.
Rate per Period - The Rate per Period is the interest rate charged.
Total Number of Times Compounded - Total Number of Times Compounded refers to the frequency with which interest is calculated and added to the principal amount in a compounding interest scenario.

STEP 1: Convert Input(s) to Base Unit

Payment made in Each Period: 60 --> No Conversion Required
Rate per Period: 0.05 --> No Conversion Required
Total Number of Times Compounded: 14 --> No Conversion Required

STEP 2: Evaluate Formula

Substituting Input Values in Formula

PV = PMT*((1-(1+r)^(-n_c))/r) --> 60*((1-(1+0.05)^(-14))/0.05)

Evaluating ... ...

PV = 593.918456405378

STEP 3: Convert Result to Output's Unit

593.918456405378 --> No Conversion Required

FINAL ANSWER

593.918456405378 ≈ 593.9185 <-- Present Value

(Calculation completed in 00.004 seconds)

You are here -

Home » Financial » Financial Accounting » Time Value of Money » Present Value » Present Value of Ordinary Annuities and Amortization

Credits

Created by Vishnu K

BMS College of Engineering (BMSCE), Bangalore

Vishnu K has created this Calculator and 200+ more calculators!

Verified by Kashish Arora

Satyawati College (DU), New Delhi

Kashish Arora has verified this Calculator and 50+ more calculators!

< Present Value Calculators

Present Value of Future Sum given compounding periods

LaTeX Go Present Value = Future Value/(1+(Rate of Return/Compounding Periods))^(Compounding Periods*Number of Periods)

Present Value of Annuity

LaTeX Go Present Value of Annuity = (Monthly Payment/Interest Rate)*(1-(1/(1+Interest Rate)^Number of Months))

Present Value of Future Sum given Number of Periods

LaTeX Go Present Value = Future Value/exp(Rate of Return*Number of Periods)

Present Value of Future Sum given Total Number of Periods

LaTeX Go Present Value = Future Value/(1+Interest Rate)^Total Number of Periods

Present Value of Ordinary Annuities and Amortization Formula

LaTeX Go

Present Value = Payment made in Each Period*((1-(1+Rate per Period)^(-Total Number of Times Compounded))/Rate per Period)
PV = PMT*((1-(1+r)^(-n_c))/r)

What is Present Value of Ordinary Annuities and Amortization?

The "present value of ordinary annuities" refers to the current value of a series of equal periodic payments or receipts occurring at the end of each period over a specified time frame, discounted back to the present at a given interest rate. This concept is commonly used in financial calculations such as loan amortization, retirement planning, and valuation of investments.
In the context of loan amortization, the present value of an ordinary annuity represents the amount of money that, if invested today at a certain interest rate, would be sufficient to cover all the future payments of the loan.

How to Calculate Present Value of Ordinary Annuities and Amortization?

Present Value of Ordinary Annuities and Amortization calculator uses Present Value = Payment made in Each Period*((1-(1+Rate per Period)^(-Total Number of Times Compounded))/Rate per Period) to calculate the Present Value, The Present Value of Ordinary Annuities and Amortization formula is defined as refers to the current value of a series of equal periodic payments or receipts occurring at the end of each period over a specified time frame, discounted back to the present at a given interest rate. Present Value is denoted by PV symbol.

How to calculate Present Value of Ordinary Annuities and Amortization using this online calculator? To use this online calculator for Present Value of Ordinary Annuities and Amortization, enter Payment made in Each Period (PMT), Rate per Period (r) & Total Number of Times Compounded (n_c) and hit the calculate button. Here is how the Present Value of Ordinary Annuities and Amortization calculation can be explained with given input values -> 212.757 = 60*((1-(1+0.05)^(-14))/0.05).

FAQ

What is Present Value of Ordinary Annuities and Amortization?

The Present Value of Ordinary Annuities and Amortization formula is defined as refers to the current value of a series of equal periodic payments or receipts occurring at the end of each period over a specified time frame, discounted back to the present at a given interest rate and is represented as PV = PMT*((1-(1+r)^(-n_c))/r) or Present Value = Payment made in Each Period*((1-(1+Rate per Period)^(-Total Number of Times Compounded))/Rate per Period). Payment made in Each Period refers to the regular cash outflow or disbursement of funds that occurs at consistent intervals over a specified period of time, The Rate per Period is the interest rate charged & Total Number of Times Compounded refers to the frequency with which interest is calculated and added to the principal amount in a compounding interest scenario.

How to calculate Present Value of Ordinary Annuities and Amortization?

The Present Value of Ordinary Annuities and Amortization formula is defined as refers to the current value of a series of equal periodic payments or receipts occurring at the end of each period over a specified time frame, discounted back to the present at a given interest rate is calculated using Present Value = Payment made in Each Period*((1-(1+Rate per Period)^(-Total Number of Times Compounded))/Rate per Period). To calculate Present Value of Ordinary Annuities and Amortization, you need Payment made in Each Period (PMT), Rate per Period (r) & Total Number of Times Compounded (n_c). With our tool, you need to enter the respective value for Payment made in Each Period, Rate per Period & Total Number of Times Compounded and hit the calculate button. You can also select the units (if any) for Input(s) and the Output as well.

How many ways are there to calculate Present Value?

In this formula, Present Value uses Payment made in Each Period, Rate per Period & Total Number of Times Compounded. We can use 3 other way(s) to calculate the same, which is/are as follows -

Present Value = Future Value/(1+(Rate of Return/Compounding Periods))^(Compounding Periods*Number of Periods)
Present Value = Future Value/(1+Interest Rate)^Total Number of Periods
Present Value = Future Value/exp(Rate of Return*Number of Periods)

Home

FREE PDFs

🔍 Search