Annuity:

Here are some common formulas used in time value of money calculations:

1. Present value: This is the value of a future payment or series of payments, discounted back to the present. It is calculated using the following formula:

   $Present value = Payment / (1 + r)^n$

Where:

• Payment is the future payment or series of payments
• r is the interest rate per period
• n is the number of periods

1. Future value: This is the value of a present payment or series of payments at a future date, compounded with interest. It is calculated using the following formula:

   $Future value = Payment * (1 + r)^n$

Where:

• Payment is the present payment or series of payments
• r is the interest rate per period
• n is the number of periods

1. Annuity present value: This is the present value of a series of equal payments made at regular intervals (e.g., annually, monthly, etc.), assuming an ordinary annuity (payments made at the end of each period). It is calculated using the following formula:

   $Annuity present value = Payment * (1 - (1 / (1 + r)^n)) / r$

Where:

• Payment is the periodic payment made on the annuity
• r is the interest rate per period
• n is the number of periods

1. Annuity future value: This is the future value of a series of equal payments made at regular intervals (e.g., annually, monthly, etc.), assuming an ordinary annuity (payments made at the end of each period). It is calculated using the following formula:

   $Annuity future value = Payment * ((1 + r)^n - 1) / r$

Where:

• Payment is the periodic payment made on the annuity
• r is the interest rate per period
• n is the number of periods

It's important to note that these formulas assume that the interest rate remains constant throughout the life of the investment or annuity, and that payments are made at the end of each period (for an ordinary annuity) or at the beginning of each period (for an annuity due).