Calculate annuity present value, future value, and periodic payment amounts.
An annuity is a series of equal payments made at regular intervals. Common examples include monthly retirement payments, loan installments, and lease payments. Understanding annuity values helps in retirement planning, loan comparison, and investment analysis.
An ordinary annuity makes payments at the end of each period (most loans). An annuity due makes payments at the beginning (rent, insurance). Annuity due values are always slightly higher because each payment has one extra period to earn interest.