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Future Worth of Annuity Formula

GoFuture Worth of Annuity given Present Annuity Formula

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The Future Worth of an Annuity is a financial metric that represents the total value of a series of equal cash flows or payments received or paid at regular intervals over time. Check FAQs

F = A \cdot (\frac{{(1 + i)}^{n} - 1}{i})

F - Future Worth of an Annuity?A - Annuity?i - Discrete Compound Interest Rate?n - Number of Interest Periods?

Future Worth of Annuity Example

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

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

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

2050 = 1000 \cdot (\frac{{(1 + 0.05)}^{2} - 1}{0.05})

2050 = 1000 \cdot (\frac{{(1 + 0.05)}^{2} - 1}{0.05})

2050 = 1000 \cdot (\frac{{(1 + 0.05)}^{2} - 1}{0.05})

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Future Worth of Annuity Solution

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

FIRST Step Consider the formula

F = A \cdot (\frac{{(1 + i)}^{n} - 1}{i})

Next Step Substitute values of Variables

∴

F = 1000 \cdot (\frac{{(1 + 0.05)}^{2} - 1}{0.05})

Next Step Prepare to Evaluate

∴

F = 1000 \cdot (\frac{{(1 + 0.05)}^{2} - 1}{0.05})

LAST Step Evaluate

∴

F = 2050

Future Worth of Annuity Formula Elements

Variables

Future Worth of an Annuity

The Future Worth of an Annuity is a financial metric that represents the total value of a series of equal cash flows or payments received or paid at regular intervals over time.

Symbol: F

Measurement: NAUnit: Unitless

Note: Value should be greater than 0.

Formulas to find Future Worth of an Annuity

Annuity

Annuity is a financial product or arrangement that involves a series of periodic payments or receipts made at equal intervals.

Symbol: A

Measurement: NAUnit: Unitless

Note: Value should be greater than 0.

Formulas to find Annuity

Discrete Compound Interest Rate

Discrete Compound Interest Rate rate refers to the interest that is calculated and compounded at specific, discrete intervals during a given period, rather than continuously.

Symbol: i

Measurement: NAUnit: Unitless

Note: Value should be greater than 0.

Formulas to find Discrete Compound Interest Rate

Number of Interest Periods

The number of interest periods, often denoted as n, represents the total count of compounding periods within a specified time frame for an investment or loan.

Symbol: n

Measurement: NAUnit: Unitless

Note: Value should be greater than 0.

Formulas to find Number of Interest Periods

Other Formulas to find Future Worth of an Annuity

Go Future Worth of Annuity given Present Annuity

F = P \cdot ({(1 + i)}^{n})

Other formulas in Interest and Investment Costs category

Go Capitalized Cost

K = V + (\frac{C R}{{(1 + i)}^{n} - 1})

Go Future Worth of Perpetuity

F P = A \cdot (\frac{{(1 + i)}^{n} - 1}{(i)})

Go Present Worth for Initial Replacement

P worth = (\frac{C R}{{(1 + i r)}^{n} - 1})

Go Present Worth of Annuity

P = A \cdot (\frac{{(1 + i)}^{n} - 1}{i \cdot {(1 + i)}^{n}})

How to Evaluate Future Worth of Annuity?

Future Worth of Annuity evaluator uses Future Worth of an Annuity = Annuity*(((1+Discrete Compound Interest Rate)^(Number of Interest Periods)-1)/(Discrete Compound Interest Rate)) to evaluate the Future Worth of an Annuity, The Future Worth of Annuity formula is defined as a financial metric that represents the total value of a series of equal cash flows or payments received or paid at regular intervals over time. Future Worth of an Annuity is denoted by F symbol.

How to evaluate Future Worth of Annuity using this online evaluator? To use this online evaluator for Future Worth of Annuity, enter Annuity (A), Discrete Compound Interest Rate (i) & Number of Interest Periods (n) and hit the calculate button.

FAQs on Future Worth of Annuity

What is the formula to find Future Worth of Annuity?

The formula of Future Worth of Annuity is expressed as Future Worth of an Annuity = Annuity*(((1+Discrete Compound Interest Rate)^(Number of Interest Periods)-1)/(Discrete Compound Interest Rate)). Here is an example- 3152.5 = 1000*(((1+0.05)^(2)-1)/(0.05)).

How to calculate Future Worth of Annuity?

With Annuity (A), Discrete Compound Interest Rate (i) & Number of Interest Periods (n) we can find Future Worth of Annuity using the formula - Future Worth of an Annuity = Annuity*(((1+Discrete Compound Interest Rate)^(Number of Interest Periods)-1)/(Discrete Compound Interest Rate)).

What are the other ways to Calculate Future Worth of an Annuity?

Here are the different ways to Calculate Future Worth of an Annuity-

Future Worth of an Annuity=Present Worth of an Annuity*((1+Discrete Compound Interest Rate)^(Number of Interest Periods))

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: Unit

Future Worth of Annuity Formula

​GoFuture Worth of Annuity given Present Annuity Formula

Future Worth of Annuity Example

Future Worth of Annuity Solution

Future Worth of Annuity Formula Elements

Other Formulas to find Future Worth of an Annuity

Other formulas in Interest and Investment Costs category

How to Evaluate Future Worth of Annuity?

FAQs on Future Worth of Annuity

Variable Name

GoFuture Worth of Annuity given Present Annuity Formula