Compute the Present Value of an Ordinary Annuity 

An Annuity is a stream of equal periodic (annual, monthly, etc.) payments or receipts. An Ordinary Annuity assumes that the payment or receipts are made on the last day of the period. For example: A $1,200,000 lottery winnings received in equal monthly payments of $10,000 per month  for 10 years discounted at 10% interest rate and  compounded monthly has a present value of  only $756,711.63.