How is present value of a single sum related to present value of a annuity?

The present value of a single sum refers to the current worth of a specific amount of money to be received in the future, discounted at a particular interest rate. In contrast, the present value of an annuity represents the current worth of a series of equal payments made at regular intervals in the future, also discounted at a specific rate. Both concepts rely on the time value of money, but while a single sum focuses on one future payment, an annuity accounts for multiple payments over time. The present value of an annuity can be viewed as the sum of the present values of multiple single sums received at each payment interval.