# What is Ordinary Annuity?

Ordinary annuity being a fixed payment, is subject to a few rules. You need to follow them while paying the annuity for something. Here's what you have to do.

Arjun Kulkarni

Last Updated: Mar 22, 2019

Present Value of an Annuity

*Present Value of Annuity = Amount received each year (1 - (1 + i)-n)*

*where i= rate of return/100 and n= number of years.*

Future Value of an Annuity

*Future Value = Periodic Interest Payments [(1 + i)*

^{n}- 1]