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Future Value of Annuity Formula

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Future Value of Annuity is the value of a group of recurring payments at a specified date in the future; these regularly recurring payments are known as an annuity. Check FAQs

FV A = (\frac{p}{IR \cdot 0.01}) \cdot ({(1 + (IR \cdot 0.01))}^{n Periods} - 1)

FV_A - Future Value of Annuity?p - Monthly Payment?IR - Interest Rate?n_Periods - Number of Periods?

Future Value of Annuity Example

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Here is how the Future Value of Annuity equation looks like with Values.

Here is how the Future Value of Annuity equation looks like with Units.

Here is how the Future Value of Annuity equation looks like.

57540 = (\frac{28000}{5.5 \cdot 0.01}) \cdot ({(1 + (5.5 \cdot 0.01))}^{2} - 1)

57540 = (\frac{28000}{5.5 \cdot 0.01}) \cdot ({(1 + (5.5 \cdot 0.01))}^{2} - 1)

57540 = (\frac{28000}{5.5 \cdot 0.01}) \cdot ({(1 + (5.5 \cdot 0.01))}^{2} - 1)

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Future Value of Annuity Solution

Follow our step by step solution on how to calculate Future Value of Annuity?

FIRST Step Consider the formula

FV A = (\frac{p}{IR \cdot 0.01}) \cdot ({(1 + (IR \cdot 0.01))}^{n Periods} - 1)

Next Step Substitute values of Variables

∴

FV A = (\frac{28000}{5.5 \cdot 0.01}) \cdot ({(1 + (5.5 \cdot 0.01))}^{2} - 1)

Next Step Prepare to Evaluate

∴

FV A = (\frac{28000}{5.5 \cdot 0.01}) \cdot ({(1 + (5.5 \cdot 0.01))}^{2} - 1)

LAST Step Evaluate

∴

FV A = 57540

Future Value of Annuity Formula Elements

Variables

Future Value of Annuity

Future Value of Annuity is the value of a group of recurring payments at a specified date in the future; these regularly recurring payments are known as an annuity.

Symbol: FV_A

Measurement: NAUnit: Unitless

Note: Value should be greater than 0.

Formulas to find Future Value of Annuity

Monthly Payment

The Monthly Payment is the amount a borrower is required to pay each month until a debt is paid off.

Symbol: p

Measurement: NAUnit: Unitless

Note: Value should be greater than 0.

Formulas to find Monthly Payment

Interest Rate

Interest Rate is the amount charged, expressed as a percentage of the principal, by a lender to a borrower for the use of assets.

Symbol: IR

Measurement: NAUnit: Unitless

Note: Value should be greater than 0.

Formulas to find Interest Rate

Number of Periods

The Number of Periods is the periods on an annuity using the present value, periodic payment, and periodic rate.

Symbol: n_Periods

Measurement: NAUnit: Unitless

Note: Value should be greater than 0.

Formulas to find Number of Periods

Other formulas in Future value category

Go Future Value of Present Sum given Compounding Periods

FV = PV \cdot {(1 + (\frac{%RoR \cdot 0.01}{C n}))}^{C n \cdot n Periods}

Go Future Value of Present Sum given Total Number of Periods

FV = PV \cdot {(1 + (%RoR \cdot 0.01))}^{n Periods}

Go Future Value of Present Sum given Number of Periods

FV = PV \cdot \exp (%RoR \cdot n Periods \cdot 0.01)

Go Future Value of Lumpsum

FV L = PV \cdot {(1 + IR P)}^{n Periods}

How to Evaluate Future Value of Annuity?

Future Value of Annuity evaluator uses Future Value of Annuity = (Monthly Payment/(Interest Rate*0.01))*((1+(Interest Rate*0.01))^Number of Periods-1) to evaluate the Future Value of Annuity, The future value of annuity is the value of a group of recurring payments at a specified date in the future; these regularly recurring payments are known as annuity. Future Value of Annuity is denoted by FV_A symbol.

How to evaluate Future Value of Annuity using this online evaluator? To use this online evaluator for Future Value of Annuity, enter Monthly Payment (p), Interest Rate (IR) & Number of Periods (n_Periods) and hit the calculate button.

FAQs on Future Value of Annuity

What is the formula to find Future Value of Annuity?

The formula of Future Value of Annuity is expressed as Future Value of Annuity = (Monthly Payment/(Interest Rate*0.01))*((1+(Interest Rate*0.01))^Number of Periods-1). Here is an example- 57540 = (28000/(5.5*0.01))*((1+(5.5*0.01))^2-1).

How to calculate Future Value of Annuity?

With Monthly Payment (p), Interest Rate (IR) & Number of Periods (n_Periods) we can find Future Value of Annuity using the formula - Future Value of Annuity = (Monthly Payment/(Interest Rate*0.01))*((1+(Interest Rate*0.01))^Number of Periods-1).

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Future Value of Annuity Formula

Future Value of Annuity Example

Future Value of Annuity Solution

Future Value of Annuity Formula Elements

Other formulas in Future value category

How to Evaluate Future Value of Annuity?

FAQs on Future Value of Annuity

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