With an annuity, you might be comparing the value of taking a lump sum versus the annuity payments. Calculating the present value of annuity lets you determine which is more valuable to you. The ...

PV, or present value, is the value of future annuity payments you’ll receive, in today’s dollars. FV, or future value, is what your annuity will be worth after you’ve made your payments.

After you retire, your income will mainly come from savings and Social Security. However, annuities provide an additional steady income stream to help you enjoy your golden years with greater ...

If we were to value this bond at a 4% discount rate, the present value would jump to $12,500 (PV = $500 0.04). If we valued it with a 10% discount rate, the present value would fall to $5,000 (PV ...

The present value of an annuity is based on a concept called the time value of money. For the uninformed, this is a widely accepted theory that it’s better to accept a lump sum of money today ...

An annuity is an insurance contract you purchase to receive payments for a specific period, such as 30 years, or for the rest of your life. By applying a mathematical formula consisting of ...