Glossary

Glossary

Term Book Chapter Definition
Present Value of Annuity Due Certified Financial Planner (CFP) Exam Chapter 14: Sample Exam Questions The present value of an annuity due can be calculated using the formula PV = P [((1 - (1 + r)^-n) / r)(1 + r)]. It represents the value in today's dollars of a series of future payments, assuming a certain interest rate.