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Future Value of Growing Annuity Formula

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Future Value of Growing Annuity refers to the total amount of money you'll have accumulated at a specific point in the future after receiving a series of increasing payments at regular intervals. Check FAQs

FV GA = II \cdot \frac{{(1 + r)}^{n Periods} - {(1 + g)}^{n Periods}}{r - g}

FV_GA - Future Value of Growing Annuity?II - Initial Investment?r - Rate per Period?n_Periods - Number of Periods?g - Growth Rate?

Future Value of Growing Annuity Example

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

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

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

4140 = 2000 \cdot \frac{{(1 + 0.05)}^{2} - {(1 + 0.02)}^{2}}{0.05 - 0.02}

4140 = 2000 \cdot \frac{{(1 + 0.05)}^{2} - {(1 + 0.02)}^{2}}{0.05 - 0.02}

4140 = 2000 \cdot \frac{{(1 + 0.05)}^{2} - {(1 + 0.02)}^{2}}{0.05 - 0.02}

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Future Value of Growing Annuity Solution

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

FIRST Step Consider the formula

FV GA = II \cdot \frac{{(1 + r)}^{n Periods} - {(1 + g)}^{n Periods}}{r - g}

Next Step Substitute values of Variables

∴

FV GA = 2000 \cdot \frac{{(1 + 0.05)}^{2} - {(1 + 0.02)}^{2}}{0.05 - 0.02}

Next Step Prepare to Evaluate

∴

FV GA = 2000 \cdot \frac{{(1 + 0.05)}^{2} - {(1 + 0.02)}^{2}}{0.05 - 0.02}

LAST Step Evaluate

∴

FV GA = 4140

Future Value of Growing Annuity Formula Elements

Variables

Future Value of Growing Annuity

Future Value of Growing Annuity refers to the total amount of money you'll have accumulated at a specific point in the future after receiving a series of increasing payments at regular intervals.

Symbol: FV_GA

Measurement: NAUnit: Unitless

Note: Value should be greater than 0.

Formulas to find Future Value of Growing Annuity

Initial Investment

The Initial Investment is the amount required to start a business or a project.

Symbol: II

Measurement: NAUnit: Unitless

Note: Value should be greater than 0.

Formulas to find Initial Investment

Rate per Period

The Rate per Period is the interest rate charged.

Symbol: r

Measurement: NAUnit: Unitless

Note: Value should be greater than 0.

Formulas to find Rate per Period

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

Growth Rate

Growth Rate refer to the percentage change of a specific variable within a specific time period, given a certain context.

Symbol: g

Measurement: NAUnit: Unitless

Note: Value should be greater than 0.

Formulas to find Growth Rate

Other formulas in Future value category

Go Future Value of Annuity

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

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)

How to Evaluate Future Value of Growing Annuity?

Future Value of Growing Annuity evaluator uses Future Value of Growing Annuity = Initial Investment*((1+Rate per Period)^(Number of Periods)-(1+Growth Rate)^(Number of Periods))/(Rate per Period-Growth Rate) to evaluate the Future Value of Growing Annuity, The Future Value of Growing Annuity formula is defined as the total amount of money a person would accumulate at a specific point in the future after receiving a series of increasing payments at regular intervals. Future Value of Growing Annuity is denoted by FV_GA symbol.

How to evaluate Future Value of Growing Annuity using this online evaluator? To use this online evaluator for Future Value of Growing Annuity, enter Initial Investment (II), Rate per Period (r), Number of Periods (n_Periods) & Growth Rate (g) and hit the calculate button.

FAQs on Future Value of Growing Annuity

What is the formula to find Future Value of Growing Annuity?

The formula of Future Value of Growing Annuity is expressed as Future Value of Growing Annuity = Initial Investment*((1+Rate per Period)^(Number of Periods)-(1+Growth Rate)^(Number of Periods))/(Rate per Period-Growth Rate). Here is an example- 4500 = 2000*((1+0.05)^(2)-(1+0.02)^(2))/(0.05-0.02).

How to calculate Future Value of Growing Annuity?

With Initial Investment (II), Rate per Period (r), Number of Periods (n_Periods) & Growth Rate (g) we can find Future Value of Growing Annuity using the formula - Future Value of Growing Annuity = Initial Investment*((1+Rate per Period)^(Number of Periods)-(1+Growth Rate)^(Number of Periods))/(Rate per Period-Growth Rate).

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Future Value of Growing Annuity Formula

Future Value of Growing Annuity Example

Future Value of Growing Annuity Solution

Future Value of Growing Annuity Formula Elements

Other formulas in Future value category

How to Evaluate Future Value of Growing Annuity?

FAQs on Future Value of Growing Annuity

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