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 ...

Before explaining how to find the present value of an annuity, we should first define the present value of an annuity. In simplest terms, this is the cash value of all your future annuity payments.

Present value and future value are two terms you’ll hear used when discussing annuities. In simple terms, the present value of an annuity represents what it’s worth today.

Present Value of Interest Payments Multiply the interest payment by the present value of an annuity factor determined in Step 2. This is the present value of the interest payments.

How is an ordinary annuity different from an annuity due? Here's the answer and how that difference affects the annuity's value.

One type of annuity factor is the present value because it determines the annuity’s monetary value if you were to fully fund it today. How An Annuity Factor Works ...

Find out how to use Microsoft Excel to calculate the present value of a fixed annuity, including a calculation example. The calculation doesn't account for taxes.