Alternatively, using Discount Factor Table:

PV = P  (x)   DF_i.n.         

Where t= number of times Discounting in a year

                              or

PV =  P /{1+ER}ⁿ

Where ER is effective rate

Effective Rate = {[1+r/t]^t -1} x   100

Present value of series of unequal payments at end of each year:

PV =  P /{1+r}¹ +  P {1+r}² +-----

e.g. Calculate the Present value of series of unequal cash flow of Rs.10,000; 15,000; 20,000;25,000;30,000 at the end of 1^st year;2^nd year;3^rd year;4^th year and 5^th year respectively at 10% rate of interest compound annually?

PV= 10,000 + 15,000   + 20,000   + 25,000 + 30,000

          (1.10)¹   (1.10)²        (1.10)³       (1.10)⁴  (1.10)⁵

    = 72,205/-

Present value of series of unequal payments at beginning of each year:

e.g. Calculate the Present value of series of unequal cash flow of Rs.10,000; 15,000; 20,000;25,000;30,000 at the beginning of 1^st year;2^nd year;3^rd year;4^th year and 5^th year respectively at 10% rate of interest compound annually?

PV= 10000 + 15000   + 20000   + 25000 + 30000

                      (1.10)¹      (1.10)²      (1.10)³     (1.10)⁴

=79,420/- 

Present value of series of equal payments at end of each year  (Ordinary Annuity):

                                                     r 

Present value of series of equal payments at beginning of each year  (Annuity Due):

PV of Annuity Due= { P   1-(1+r)^{-n }}           (1+r)