Annuity Present Values

To find annuity present values with a financial calculator, we need to use the PMT key (you were probably wondering what it was for). Compared to finding the present value of a single amount, there are two important differences. First, we enter the annuity cash flow using the PMT key,and,second, we don't enter anything for the future value, FV .So,for example, the problem we have been examining is a three-year, $500 annuity. If the discount rate is 10 percent, we need to do the following (after clearing out the calculator!):

Enter

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Sell Your Annuity

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