How To Calculate Present Value Of Deferred Annuities? 
To calculate the present value of deferred annuities at the time the annuity payments begin , you use the following mathematical formula . Its is C -LCB- -LSB- 1 - -LRB- 1 / -LRB- -LRB- 1 + i -RRB- ^ n -RSB- / i -RCB- . 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 -LSB- 1 / -LRB- 1 + r -RRB- -RRB- ^ t -RSB- . 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 . 