# Annuity Table

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## Definition of 'Annuity Table'

An annuity table is a table that shows the future value of an annuity, which is a series of equal payments made at regular intervals. The table can be used to calculate the present value of an annuity, the amount of money that would be needed to fund an annuity, and the rate of return on an annuity.

Annuity tables are based on the following assumptions:

* The payments are made at the end of each period.
* The interest rate is constant.
* The payments continue for a fixed number of years.

Annuity tables can be used for a variety of purposes, such as:

* Planning for retirement.
* Funding a child's education.
* Saving for a down payment on a house.

There are a number of different types of annuity tables, each of which is designed for a specific purpose. The most common type of annuity table is the ordinary annuity table. This table shows the future value of an annuity when the payments are made at the end of each period.

Another type of annuity table is the annuity due table. This table shows the future value of an annuity when the payments are made at the beginning of each period.

Annuity tables can be used to calculate the present value of an annuity, which is the amount of money that would be needed to fund an annuity. The present value of an annuity can be calculated using the following formula:

```
PV = A * [(1 + r) ^ n - 1] / r
```

where:

* PV is the present value of the annuity.
* A is the amount of each payment.
* r is the interest rate.
* n is the number of years.

Annuity tables can also be used to calculate the rate of return on an annuity. The rate of return on an annuity is the annual percentage increase in the value of the annuity. The rate of return on an annuity can be calculated using the following formula:

```
r = [(FV - PV) / PV] * 100
```

where:

* r is the rate of return on the annuity.
* FV is the future value of the annuity.
* PV is the present value of the annuity.

Annuity tables are a valuable tool for financial planning. They can be used to calculate the future value of an annuity, the present value of an annuity, and the rate of return on an annuity.

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