Explore commonly used personal finance terms.
An annuity factor table provides values that help calculate the present value of an annuity, based on specific interest rates and time periods. These tables are used in financial planning to determine how much a future income stream is worth today. Annuity factor tables simplify complex annuity calculations, allowing investors and planners to quickly estimate present values for fixed payments over time. Financial professionals often refer to these tables when structuring retirement income plans or evaluating long-term financial commitments.
