To calculate the present value of deferred annuities at the time the annuity payments begin, you use the following mathematical formula. Its is C{[1-(1/((1+i)^n]/i}. C represents the amount of the payments that will be received when the annuities are annuitized. N represents the number of payments that will be received. And i stands for the interest rate paid.
To calculate the value of that annuity at present, before the payment period begins, take the number created by the formula above and insert it for the PV value in this formula: PV[1/(1+r))^t]. In this formula, r is the rate of return and t is the number of time periods that are skipped before the annuity payments start. E.g. If payments start in year 5, t would be 4.
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To calculate the value of that annuity at present, before the payment period begins, take the number created by the formula above and insert it for the PV value in this formula: PV[1/(1+r))^t]. In this formula, r is the rate of return and t is the number of time periods that are skipped before the annuity payments start. E.g. If payments start in year 5, t would be 4.