Working on Time Value of money again.Future value of an initial sum of money:
Future value = Present value * (1 + interest rate)^years
Solving for the present value of a future sum of money is a variant of the same equation.
Present Value = Future Value / (1+interest rate)^years
Annuities: An ordinary annuity is a set number of payments made over a period of time. An Annuity Due is exactly like an ordinary annuity, but payments are made at the beginnings of periods rather than the ending of periods. Essentially, each payment will have one extra period to accrue interest.