Annuities Due: An annuity due, by contrast, involves payments that are made at the beginning of each period. Rent, which ...

Here's what you should know about the annuity formula, including how to calculate present and future value. What is the difference between the present value and the future value of an annuity?

For example, the present-value formula would be used to determine how much to invest now if you want to guarantee annual payments of $1,000 for 10 years. To achieve a $1,000 annuity payment for 10 ...