How an Annuity Table Works An annuity table provides a factor, based on time, and a discount rate (interest rate) by which an annuity payment can be multiplied to determine its present value. For ...

The present value interest factor of an annuity is calculated to compare the real value of a lump sum payment today and the same amount of money paid over time.

Summing up the present values of all 30 years gives us the total present value of their future earnings, which is $2,281,988. The salary-to-PV ratio is then $120,000 divided by $2,281,988, which ...