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Growing Annuity Payment using Future Value Formula

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Initial Payment refers to the first installment or upfront amount paid at the beginning of a financial transaction or contract. Check FAQs

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

PMT_initial - Initial Payment?FV - Future Value?r - Rate per Period?g - Growth Rate?n_Periods - Number of Periods?

Growing Annuity Payment using Future Value Example

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

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

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

15942.029 = \frac{33000 \cdot (0.05 - 0.02)}{({(1 + 0.05)}^{2}) - ({(1 + 0.02)}^{2})}

15942.029 = \frac{33000 \cdot (0.05 - 0.02)}{({(1 + 0.05)}^{2}) - ({(1 + 0.02)}^{2})}

15942.029 = \frac{33000 \cdot (0.05 - 0.02)}{({(1 + 0.05)}^{2}) - ({(1 + 0.02)}^{2})}

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Growing Annuity Payment using Future Value Solution

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

FIRST Step Consider the formula

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

Next Step Substitute values of Variables

∴

PMT initial = \frac{33000 \cdot (0.05 - 0.02)}{({(1 + 0.05)}^{2}) - ({(1 + 0.02)}^{2})}

Next Step Prepare to Evaluate

∴

PMT initial = \frac{33000 \cdot (0.05 - 0.02)}{({(1 + 0.05)}^{2}) - ({(1 + 0.02)}^{2})}

Next Step Evaluate

∴

PMT initial = 15942.0289855072

LAST Step Rounding Answer

∴

PMT initial = 15942.029

Growing Annuity Payment using Future Value Formula Elements

Variables

Initial Payment

Initial Payment refers to the first installment or upfront amount paid at the beginning of a financial transaction or contract.

Symbol: PMT_initial

Measurement: NAUnit: Unitless

Note: Value should be greater than 0.

Formulas to find Initial Payment

Future Value

Future Value is the calculated future value of any investment.

Symbol: FV

Measurement: NAUnit: Unitless

Note: Value should be greater than 0.

Formulas to find Future Value

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

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

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 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 Growing Annuity Payment using Future Value?

Growing Annuity Payment using Future Value evaluator uses Initial Payment = (Future Value*(Rate per Period-Growth Rate))/(((1+Rate per Period)^(Number of Periods))-((1+Growth Rate)^(Number of Periods))) to evaluate the Initial Payment, The Growing Annuity Payment using Future Value represents a series of increasing cash flows at specified intervals, compounded to a future point in time. Initial Payment is denoted by PMT_initial symbol.

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

FAQs on Growing Annuity Payment using Future Value

What is the formula to find Growing Annuity Payment using Future Value?

The formula of Growing Annuity Payment using Future Value is expressed as Initial Payment = (Future Value*(Rate per Period-Growth Rate))/(((1+Rate per Period)^(Number of Periods))-((1+Growth Rate)^(Number of Periods))). Here is an example- 15942.03 = (33000*(0.05-0.02))/(((1+0.05)^(2))-((1+0.02)^(2))).

How to calculate Growing Annuity Payment using Future Value?

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

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Growing Annuity Payment using Future Value Formula

Growing Annuity Payment using Future Value Example

Growing Annuity Payment using Future Value Solution

Growing Annuity Payment using Future Value Formula Elements

Other formulas in Future value category

How to Evaluate Growing Annuity Payment using Future Value?

FAQs on Growing Annuity Payment using Future Value

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