# Present Value Annuity Tables

The purpose of the present value annuity tables is to make it possible to carry out annuity calculations without the use of a financial calculator.

They provide the value now of 1 received at the end of each period for n periods at a discount rate of i%.

The present value of an annuity formula is:

```PV = Pmt x (1 - 1 / (1 + i)n) / i
```

Present value annuity tables are used to provide a solution for the part of the present value of an annuity formula shown in red, this is sometimes referred to as the present value annuity factor.

`PV = Pmt x Present value annuity factor`

## Present Value Annuity Table Example

What is the present value of 5,000 received at the end of each year for 12 years, if the discount rate is 7%?

```Pmt = 5,000
n = 12
i = 7%
PV = Pmt x (1 - 1 / (1 + i)n) / i
PV = 5,000 x (1 - 1 / (1 + 7%)12) / 7%
PV = 5,000 x Present value of annuity factor for n = 12, i = 7%
PV = 5,000 x 7.9427
PV = 39,713.50
```

The present value annuity factor of 7.9427, is found using the tables by looking along the row for n = 12, until reaching the column for i = 7%, as shown in the preview below. The present value of annuity table is available for download in PDF format by following the link below.

Present value annuity tables are one of many time value of money tables, discover another at the links below.

Notes and major health warnings
Users use these present value annuity tables at their own risk. We make no warranty or representation as to its accuracy and we are covered by the terms of our legal disclaimer, which you are deemed to have read. This is an example of an annuity factor table that you might use when considering how to calculate annuity values. It is purely illustrative of PV annuity tables. This is not intended to reflect general standards or targets for any particular business, company or sector. If you do spot a mistake in these time value of money tables, please let us know and we will try to fix it.