Here's what you should know about the annuity formula, including how to calculate present and future value. What is the difference between the present value and the future value of an annuity?

Or use the Future Value formula: The one-cent difference in these results, $5,525.64 vs. $5,525.63, is due to rounding in the first calculation. Present Value of an Ordinary Annuity In contrast to ...

insta_photos / Getty Images “Present value” and “future value” are terms that are frequently used in annuity contracts ... For example, the present-value formula would be used to determine ...