With a zero interest rate both the present value and the future value of an N payment annuity would equal N × payment.

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When the interest rate is zero, there is no discounting or compounding of the annuity payments, so the present value and future value would simply be the sum of all the payments. Thus, the present value and future value of an N payment annuity would both equal N times the payment amount.

With a Zero Interest Rate Both the Present Value and the Future