Present value of 1 table

A present value of 1 table states the present value discount rates that are used for various combinations
of interest rates and time periods. A discount rate selected from this table is then multiplied by a cash
sum to be received at a future date, to arrive at its present value. The interest rate selected in the table
can be based on the current amount the investor is obtaining from other investments, the corporate
cost of capital, or some other measure.

A present value of 1 table that employs a standard set of interest rates and time periods appears next.

Present Value of 1 Table

n 1% 2% 3% 4% 5% 6% 8% 10% 12%

1 0.9901 0.9804 0.9709 0.9615 0.9524 0.9434 0.9259 0.9091 0.8929

2 0.9803 0.9612 0.9426 0.9246 0.9070 0.8900 0.8573 0.8265 0.7972

3 0.9706 0.9423 0.9151 0.8890 0.8638 0.8396 0.7938 0.7513 0.7118

4 0.9610 0.9239 0.8885 0.8548 0.8227 0.7921 0.7350 0.6830 0.6355

5 0.9515 0.9057 0.8626 0.8219 0.7835 0.7473 0.6806 0.6209 0.5674

6 0.9421 0.8880 0.8375 0.7903 0.7462 0.7050 0.6302 0.5645 0.5066

7 0.9327 0.8706 0.8131 0.7599 0.7107 0.6651 0.5835 0.5132 0.4524

8 0.9235 0.8535 0.7894 0.7307 0.6768 0.6274 0.5403 0.4665 0.4039

9 0.9143 0.8368 0.7664 0.7026 0.6446 0.5919 0.5003 0.4241 0.3606

10 0.9053 0.8204 0.7441 0.6756 0.6139 0.5584 0.4632 0.3855 0.3220

11 0.8963 0.8043 0.7224 0.6496 0.5847 0.5268 0.4289 0.3505 0.2875

12 0.8875 0.7885 0.7014 0.6246 0.5568 0.4970 0.3971 0.3186 0.2567

13 0.8787 0.7730 0.6810 0.6006 0.5303 0.4688 0.3677 0.2897 0.2292

14 0.8700 0.7579 0.6611 0.5775 0.5051 0.4423 0.3405 0.2633 0.2046

15 0.8614 0.7430 0.6419 0.5553 0.4810 0.4173 0.3152 0.2394 0.1827

16 0.8528 0.7285 0.6232 0.5339 0.4581 0.3937 0.2919 0.2176 0.1631

17 0.8444 0.7142 0.6050 0.5134 0.4363 0.3714 0.2703 0.1978 0.1456

18 0.8360 0.7002 0.5874 0.4936 0.4155 0.3503 0.2503 0.1799 0.1300

19 0.8277 0.6864 0.5703 0.4746 0.3957 0.3305 0.2317 0.1635 0.1161

20 0.8195 0.6730 0.5537 0.4564 0.3769 0.3118 0.2146 0.1486 0.1037

21 0.8114 0.6598 0.5376 0.4388 0.3589 0.2942 0.1987 0.1351 0.0926

22 0.8034 0.6468 0.5219 0.4220 0.3419 0.2775 0.1839 0.1229 0.0826

23 0.7954 0.6342 0.5067 0.4057 0.3256 0.2618 0.1703 0.1119 0.0738

24 0.7876 0.6217 0.4919 0.3901 0.3101 0.2470 0.1577 0.1015 0.0659

25 0.7798 0.6095 0.4776 0.3751 0.2953 0.2330 0.1460 0.0923 0.0588

Future value of an ordinary annuity table

An annuity is a series of payments that occur at the same intervals and in the same amounts. An
example of an annuity is a series of payments from the buyer of an asset to the seller, where the buyer
promises to make a series of regular payments. If the payments are due at the end of a period, the
annuity is called an ordinary annuity. If the payments are due at the beginning of a period, the annuity is
called an annuity due.

An annuity table represents a method for determining the future value of an annuity. The annuity table
contains a factor specific to the future value of a series of payments, when a certain interest earnings
rate is assumed.

Rate Table For the Future Value of an Ordinary Annuity of 1

n 1% 2% 3% 4% 5% 6% 8% 10% 12%
1 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000

2 2.0100 2.0200 2.0300 2.0400 2.0500 2.0600 2.0800 2.1000 2.1200

3 3.0301 3.0604 3.0909 3.1216 3.1525 3.1836 3.2464 3.3100 3.3744

4 4.0604 4.1216 4.1836 4.2465 4.3101 4.3746 4.5061 4.6410 4.7793

5 5.1010 5.2040 5.3091 5.4163 5.5256 5.6371 5.8666 6.1051 6.3529

6 6.1520 6.3081 6.4684 6.6330 6.8019 6.9753 7.3359 7.7156 8.1152

7 7.2135 7.4343 7.6625 7.8983 8.1420 8.3938 8.9228 9.4872 10.0890

8 8.2857 8.5830 8.8923 9.2142 9.5491 9.8975 10.6366 11.4359 12.2997

9 9.3685 9.7546 10.1591 10.5828 11.0266 11.4913 12.4876 13.5795 14.7757

10 10.4622 10.9497 11.4639 12.0061 12.5779 13.1808 14.4866 15.9374 17.5487

11 11.5668 12.1687 12.8078 13.4864 14.2068 14.9716 16.6455 18.5312 20.6546

12 12.6825 13.4121 14.1920 15.0258 15.9171 16.8699 18.9771 21.3843 24.1331

13 13.8093 14.6803 15.6178 16.6268 17.7130 18.8821 21.4953 24.5227 28.0291

14 14.9474 15.9739 17.0863 18.2919 19.5986 21.0151 24.2149 27.9750 32.3926

15 16.0969 17.2934 18.5989 20.0236 21.5786 23.2760 27.1521 31.7725 37.2797

16 17.2579 18.6393 20.1569 21.8245 23.6575 25.6725 30.3243 35.9497 42.7533

17 18.4304 20.0121 21.7616 23.6975 25.8404 28.2129 33.7502 40.5447 48.8837

18 19.6148 21.4123 23.4144 25.6454 28.1324 30.9057 37.4502 45.5992 55.7497

19 20.8109 22.8406 25.1169 27.6712 30.5390 33.7600 41.4463 51.1591 63.4397

20 22.0190 24.2974 26.8704 29.7781 33.0660 36.7856 45.7620 57.2750 72.0524

21 23.2392 25.7833 28.6765 31.9692 35.7193 39.9927 50.4229 64.0025 81.6987

22 24.4716 27.2990 30.5368 34.2480 38.5052 43.3923 55.4568 71.4028 92.5026

23 25.7163 28.8450 32.4529 36.6179 41.4305 46.9958 60.8933 79.5430 104.6029

24 26.9735 30.4219 34.4265 39.0826 44.5020 50.8156 66.7648 88.4973 118.1552

25 28.2432 32.0303 36.4593 41.6459 47.7271 54.8645 73.1059 98.3471 133.3339

26 29.5256 33.6709 38.5530 44.3117 51.1135 59.1564 79.9544 109.1818 150.3339

27 30.8209 35.3443 40.7096 47.0842 54.6691 63.7058 87.3508 121.0999 169.3740

28 32.1291 37.0512 42.9309 49.9676 58.4026 68.5281 95.3388 134.2099 190.6989

29 33.4504 38.7922 45.2189 52.9663 62.3227 73.6398 103.9659 148.6309 214.5828

30 34.7849 40.5681 47.5754 56.0849 66.4389 79.0582 113.2832 164.4940 241.3327

The preceding annuity table is useful as a quick reference, but only provides values for discrete time
periods and interest rates that may not exactly correspond to a real-world scenario. Accordingly, use the
following annuity formula in an electronic spreadsheet to more precisely calculate the correct amount
of the future value of an ordinary annuity:

P = PMT [((1 + r)n - 1) / r]

Where:

P = The future value of the annuity stream to be paid in the future

PMT = The amount of each annuity payment
r = The interest rate
n = The number of periods over which payments are made
Future value of an annuity due table
An annuity is a series of payments that occur at the same intervals and in the same amounts. If the
payments are due at the end of a period, the annuity is called an ordinary annuity. If the payments are
due at the beginning of a period, the annuity is called an annuity due.

An annuity table represents a method for determining the future value of an annuity. The annuity table
contains a factor specific to the future value of a series of payments, when a certain interest earnings
rate is assumed. When this factor is multiplied by one of the payments, you arrive at the future value of
the stream of payments.

Rate Table For the Future Value of an Annuity Due of 1

n 1% 2% 3% 4% 5% 6% 8% 10% 12%

1 1.0100 1.0200 1.0300 1.0400 1.0500 1.0600 1.0800 1.1000 1.1200

2 2.0301 2.0604 2.0909 2.1216 2.1525  2.1836 2.2464 2.3100 2.3744

3 3.0604 3.1216 3.1836 3.2465 3.3101 3.3746 3.5061 3.6410 3.7793

4 4.1010 4.2040 4.3091 4.4163 4.5256 4.6371 4.8666 5.1051 5.3528

5 5.1520 5.3081 5.4684 5.6330  5.8019 5.9753 6.3359 6.7156 7.1152

6 6.2135 6.4343 6.6625 6.8983 7.1420 7.3938 7.9228 8.4872 9.0890

7 7.2857 7.5830 7.8923 8.2142 8.5491 8.8975 9.6366 10.4359 11.2997

8 8.3685 8.7546 9.1591 9.5828  10.0266 10.4913 11.4876 12.5795 13.7757

9 9.4622 9.9497 10.4639 11.0061 11.5779 12.1808 13.4866 14.9374 16.5487

10 10.5668 11.1687 11.8078 12.4864 13.2068 13.9716 15.6455 17.5312 19.6546

11 11.6825 12.4121 13.1920 14.0258 14.9171 15.8699 17.9771 20.3843 23.1331

12 12.8093 13.6803 14.6178 15.6268 16.7130 17.8821 20.4953 23.5227 27.0291

13 13.9474 14.9739 16.0863 17.2919 18.5986 20.0151 23.2149 26.9750 31.3926

14 15.0969 16.2934 17.5989 19.0236 20.5786 22.2760 26.1521 30.7725 36.2797

15 16.2579 17.6393 19.1569 20.8245  22.6575 24.6725 29.3243 34.9497 41.7533

16 17.4304 19.0121 20.7616 22.6975 24.8404 27.2129 32.7502 39.5447 47.8837

17 18.6147 20.4123 22.4144 24.6454 27.1324 29.9057 36.4502 44.5992 54.7497

18 19.8109 21.8406 24.1169 26.6712 29.5390 32.7600 40.4463 50.1591 62.4397

19 21.0190 23.2974 25.8704 28.7781 32.0660 35.7856 44.7620 56.2750 71.0524

20 22.2392 24.7833 27.6765 30.9692 34.7193 38.9927 49.4229 63.0025 80.6987

21 23.4716 26.2990 29.5368 33.2480 37.5052 42.3923 54.4568 70.4027 91.5026

22 24.7163 27.8450 31.4529 35.6179 40.4305 45.9958 59.8933 78.5430 103.6029

23 25.9735 29.4219 33.4265 38.0826 43.5020 49.8156 65.7648 87.4973 117.1552

24 27.2432 31.0303 35.4593 40.6459 46.7271 53.8645 72.1059 97.3471 132.3339

25 28.5256 32.6709 37.5530 43.3117 50.1135 58.1564 78.9544 108.1818 149.3339

26 29.8209 34.3443 39.7096 46.0842 53.6691 62.7058 86.3508 120.0999 168.3740

27 31.1291 36.0512 41.9309 48.9676 57.4026 67.5281 94.3388 133.2099 189.6989

28 32.4504 37.7922 44.2189 51.9663 61.3227 72.6398 102.9659 147.6309 213.5828

29 33.7849 39.5681 46.5754 55.0849 65.4388 78.0582 112.2832 163.4940 240.3327

30 35.1327 41.3794 49.0027 58.3283 69.7608 83.8017 122.3459 180.9434 270.2926

A glance at the table should make clear the massive impact of interest rate compounding over time.

Reference:
Accounting tools (2019)

https://www.accountingtools.com/articles/2017/5/17/present-value-of-1-table#:~:text=A%20present
%20value%20of%201,arrive%20at%20its%20present%20value

Accounting tools (2020)

https://www.accountingtools.com/articles/2017/5/17/future-value-of-an-ordinary-annuity-table

Accounting tools (2020)

https://www.accountingtools.com/articles/2017/5/17/future-value-of-an-annuity-due-table