Enter the present value of an annuity, the interest rate, and the number of periods into the calculator to determine the ordinary annuity.

Ordinary Annuity Formula

The following formula is used to calculate an ordinary annuity

OA = r * [ (PVA/ (1-(1+r)^-n) ]

  • Where OA is the ordinary annuity
  • r is the interest rate
  • PVA is the present value of the annuity
  • n is the number of periods

Ordinary Annuity Definition

An ordinary annuity is defined as the total amount of an annuity based on the value, interest rate, and the number of periods.

Ordinary Annuity Example

How to calculate ordinary annuity?

  1. First, determine the present value.

    Calculate the present value of the annuity.

  2. Next, determine the interest rate.

    Calculate the interest rate.

  3. Next, determine the number of periods.

    This will be the number of periods the interest is applied over.

  4. Finally, calculate the ordinary annuity.

    Using the formula, calculate the ordinary annuity.

FAQ

What is ordinary annuity?

An ordinary annuity is the total amount of an annuity based on the present value, interest rate, and the number of periods.