Present Value of Ordinary Annuity Chart

This informative chart illustrates the concept of calculating the present value of an ordinary annuity. It visually breaks down how a series of future, equal payments, such as the $5,000 shown, are each discounted back to their worth today. Each colored line represents a separate payment from a different year (Year 1 to Year 5) being brought back to the present, helping to explain the time value of money and how individual discounted cash flows sum up to the total present value of the annuity.

annuity - present value - finance - ordinary - discounting - time value - cash flow - financial concept - money