A. Present Value of an Annuity

 Use the table below to find the present value of an annuity of $ 1 in arrears.

Find the row for your discount rate (or cost of capital). Then find the column corresponding to the last year (or period) of the investment. The point at which the column and the row intersect is the present value of a series of $ 1 payments. Multiply this value by the number of dollars you expect to receive in each payment, in order to find the present value of the series.

Present Values of $1 per period payable at end of each period

Years(Period)

Discount Rate/

1234567
3.0% $ 0.970874$ l.913470 $ 2.828611 $ 3.717098 $ 4.579707 $ 5.417191 $ 6.230283
3.5% $ 0.966184 $ l.899694 $ 2.801637$ 3.673079$ 4.515052$ 5.328553$ 6.114544
4.0% $ 0.961538$ 1.886095$ 2.775091$ 3.629895$ 4.451822$ 5.242137$ 6.002055
4.5% $ 0.956938$ 1.872668$ 2.748964$ 3.587526$ 4.389977$ 5.157872$ 5.892701
5.0% $ 0.952381$ 1.859410 $ 2.723248$ 3.545951$ 4.329477$ 5.075692$ 5.786373
5.5% $ 0.947867 $ 1.846320 $ 2.697933 $ 3.505150 $ 4.270284 $ 4.995530 $ 5.682967
6.0% $ 0.943396 $ 1.833393 $ 2.673012 $ 3.465106 $ 4.212364 $ 4.917324 $ 5.582381
6.5% $ 0.938967$ 1.820626 $ 2.648476$ 3.425799$ 4.155679$ 4.841014$ 5.484520
7.0% $ 0.934579$ 1.808018$ 2.624316$ 3.387211$ 4.100197$ 4.766540$ 5.389289
7.5% $ 0.930233$ l.795565$ 2.600526$ 3.349326$ 4.045885$ 4.693846$ 5.296601
8.0% $ 0.925926$ 1.783265$ 2.577097$ 3.312127$ 3.992710$ .622880$ 5.206370
8.5% $ 0.921659$ 1.771114$ 2.554022$ 3.275597$ 3.940642$ 4.553587$ 5.118514
9.0% $ 0.917431$ 1.759111$ 2.531295$ 3.239720$ 3.889651$ 4.485919$ 5.032953
9.5% $ 0.913242$ l.747253$ 2.508907$ 3.204481$ 3.839709$ 4.419825$ 4.949612
10.0% $ 0.909091$ 1.735537$ 2.486852$ 3.169865$ 3.790787$ 4.355261$ 4.868419
10.5% $ 0.904977$ 1.723961$ 2.465123$ 3.135858$ 3.742858$ 4.292179$ 4.789303
11.0% $ 0.900901$ 1.712523$ 2.443715$ 3.102446$ 3.695897$ 4.230538$ 4.712196
11.5% $ 0.896861$ 1.701221$ 2.422619$ 3.069614$ 3.649878$ 4.170294$ 4.637035
12.0% $ 0.892857$ 1.690051$ 2.401831$ 3.037349$ 3.604776$ 4.111407$ 4.563757
12.5% $ 0.888889$ 1.679012$ 2.381344$ 3.005639$ 3.560568$ 4.053839$ 4.492301
13.0% $ 0.884956$ 1.668102$ 2.361153$ 2.974471$ 3.517231$ 3.997550$ 4.422610
13.5% $ 0.881057$ 1.657319$ 2.341250$ 2.943833$ 3.474743$ 3.942505$ 4.354630
14.0% $ 0.877193$ 1.646661$ 2.321632$ 2.913712$ 3.433081$ 3.888668$ 4288305
14.5% $ 0.873362$ 1.636124$ 2.302292$ 2.884098$ 3.392225$ 3.836005$ 4.223585
15.0% $ 0.869565$ 1.625709$ 2.283225$ 2.854978$ 3.352155$ 3.784483$ 4.160420
16.0% $ 0.862$ 1.605$ 2.246$ 2.793$ 3.274$ 3.685$ 4.039
17.0% $ 0.855$ 1.585$ 2.210$ 2.743$ 3.199$ 3.589$ 3.922
18.0% $ 0.847$ 1.566$ 2.174$ 2.690$ 3.127$ 3.498$ 3.812
19.0% $ 0.840$ 1.547$ 2.140$ 2.639$ 3.058$ 3.410$ 3.706
20.0% $ 0.833$ 1.528$ 2.106$ 2.589$ 2.991$ 3.326$ 3.605
21.0% $ 0.826$ 1.509$ 2.074$ 2.540$ 2.926$ 3.245$ 3.508
22.0% $ 0.820$ 1.492$ 2.042$ 2.494$ 2.864$ 3.167$ 3.416

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