An annuity is a financial product that involves a series of equal, regular payments over a specified period. This Annuity Calculator is designed to find the Present Value (PV) of an annuity, which is a crucial calculation in financial planning, particularly for retirement. The present value tells you the single lump-sum amount of money that would be equivalent to receiving the stream of future payments, given a certain interest rate. This helps in understanding the true value of a retirement plan, a structured settlement, or a loan. To use the calculator, you need to provide four pieces of information. First, enter the 'Regular Payment Amount', which is the fixed amount received each period. Second, input the 'Interest Rate' per period as a percentage. It's important that the rate matches the period (e.g., if payments are monthly, use a monthly interest rate). Third, provide the 'Number of Periods' over which the payments will be made. Finally, you must select the 'Annuity Type'. An 'Ordinary Annuity' involves payments made at the end of each period, which is common for loans. An 'Anuity Due' involves payments made at the beginning of each period, which is typical for rent or retirement income. This choice affects the calculation, as payments made earlier are subject to compounding for a longer duration. After filling in the details, the calculator will compute and display the total Present Value of the annuity.