An annuity table is a financial tool that provides a set of values used to calculate the future value or present value of a series of equal payments made at regular intervals. These tables are commonly used in financial planning, investment analysis, and insurance.

There are two main types of annuity tables:

1. **Present Value Annuity Tables:** These tables help calculate the present value of a series of future cash flows or payments. The present value is the current worth of a series of future cash flows, discounted at a specific rate of interest. The table provides factors based on the interest rate and the number of periods.

The formula for present value (PV) is often represented as:

\[ PV = P \times \left( \frac{1 – (1 + r)^{-n}}{r} \right) \]

where:

– \( P \) is the periodic payment,

– \( r \) is the interest rate per period, and

– \( n \) is the number of periods.

2. **Future Value Annuity Tables:** These tables help calculate the future value of a series of equal payments. The future value represents the value of a series of cash flows at a specific point in the future, taking into account the compounding of interest over time. The table provides factors based on the interest rate and the number of periods.

The formula for future value (FV) is often represented as:

\[ FV = P \times \left( \frac{(1 + r)^n – 1}{r} \right) \]

where \( P \) is the periodic payment, \( r \) is the interest rate per period, and \( n \) is the number of periods.

Annuity tables can also include values for different compounding frequencies, such as annually, semi-annually, quarterly, or monthly.

It’s important to note that with the availability of financial calculators and spreadsheet software, manual calculations using annuity tables are less common today. Instead, these tools are often used to perform these calculations efficiently.