### Formula

PV

value of the annuity at time=0

A

annuity payment in the first period

i

interest rate that would be compounded for each period of time

g

rate of growth of the annuity

n

number of payment periods

PV

value of the annuity at time=0

A

annuity payment in the first period

i

interest rate that would be compounded for each period of time

g

rate of growth of the annuity

n

number of payment periods

An annuity is a series of equal payments or receipts that occur at evenly spaced intervals.In this case each cash flow grows by a factor of (1+g).

A

i

g

n

PV

Precision

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