The present value of an annuity is the amount of money we would need now in order to be able to make the payments of a specific amount in the future. and solving for the present value \(\mathrm{PV}\) ...The present value of an annuity is the amount of money we would need now in order to be able to make the payments of a specific amount in the future. and solving for the present value \(\mathrm{PV}\) after substituting the numerical values for the other items in the formula, many textbooks first solve the formula for \(\mathrm{PV}\) in order to develop a new formula for the present value.
