Present Value of an Annuity Calculator Inch Calculator Now, in this short video, I'm going to show you how to calculate the present value of an annuity before we worked on the present value of a payment, so we're dealing with one particular figure and then discounting that to present day dollars. In this case, we're going to deal with annuities, which is, we know, are a series of equal payments that usually span a certain period of time and obviously that is a little more intricate, because we're dealing with money that we're going to receive not necessarily at one time, but over a period of time and as a result, they have to be discounted at different periods of time, of course, which just adds to the complexity. So what I'm going to do is I'm going to show you two different ways to do this problem? First graphically and just so, you kind of see visually how it works, and then I'm going to show you a quick equation that you can use to actually solve the...