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Future Value of Annuity Solution

STEP 0: Pre-Calculation Summary
Formula Used
future_value_of_annuity = (Monthly Payment/Interest Rate)*((1+Interest Rate)^Number of Periods-1)
FVAnnuity = (p/i)*((1+i)^n-1)
This formula uses 3 Variables
Variables Used
Monthly Payment- The monthly payment is the amount a borrower is required to pay each month until a debt is paid off.
Interest Rate- Interest rate is the amount charged, expressed as a percentage of principal, by a lender to a borrower for the use of assets.
Number of Periods- The number of periods is the periods on an annuity using the present value, periodic payment, and periodic rate.
STEP 1: Convert Input(s) to Base Unit
Monthly Payment: 28000 --> No Conversion Required
Interest Rate: 6 --> No Conversion Required
Number of Periods: 1 --> No Conversion Required
STEP 2: Evaluate Formula
Substituting Input Values in Formula
FVAnnuity = (p/i)*((1+i)^n-1) --> (28000/6)*((1+6)^1-1)
Evaluating ... ...
FVAnnuity = 28000
STEP 3: Convert Result to Output's Unit
28000 --> No Conversion Required
FINAL ANSWER
28000 <-- Future Value of Annuity
(Calculation completed in 00.031 seconds)

11 Other formulas that you can solve using the same Inputs

Number of Months
number_of_months = log10((Monthly Payment/Interest Rate)/((Monthly Payment/Interest Rate)-Loan Amount))/log10(1+Interest Rate) Go
Net Present Value (NPV) for even cash flow
net_present_value = Expected Cash Flow*((1-(1+Rate of Return)^-Number of Periods)/Rate of Return)-Initial Investment Go
Future Value of a Present Sum when Compounding Periods are given
future_value = Present Value*(1+(Rate of Return/Compounding Periods))^(Compounding Periods*Number of Periods) Go
Present Value of a Future Sum when compounding periods are given
present_value = Future Value/(1+(Rate of Return/Compounding Periods))^(Compounding Periods*Number of Periods) Go
Present Value of Annuity
present_value_of_annuity = (Monthly Payment/Interest Rate)*(1-(1/(1+Interest Rate)^Number of Months)) Go
Annuity Payment
annuity_payment = (Rate per Period*Present Value)/(1-(1+Rate per Period)^-Number of Periods) Go
Loan Amount
loan_amount = (Annuity Payment/Interest Rate)*(1-(1/(1+Interest Rate)^Compounding Periods)) Go
Future Value of a Present Sum when the number of periods is given
future_value = Present Value*exp(Rate of Return*Number of Periods) Go
Present Value of a Future Sum when number of periods is given
present_value = Future Value/exp(Rate of Return*Number of Periods) Go
Future Value of a Present Sum when the total number of periods is given
future_value = Present Value*(1+Interest Rate)^Total Number of Periods Go
Present Value of a Future Sum when total number of periods is given
present_value = Future Value/(1+Interest Rate)^Total Number of Periods Go

Future Value of Annuity Formula

future_value_of_annuity = (Monthly Payment/Interest Rate)*((1+Interest Rate)^Number of Periods-1)
FVAnnuity = (p/i)*((1+i)^n-1)

How to Calculate Future Value of Annuity?

Future Value of Annuity calculator uses future_value_of_annuity = (Monthly Payment/Interest Rate)*((1+Interest Rate)^Number of Periods-1) to calculate 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 and is denoted by FVAnnuity symbol.

How to calculate Future Value of Annuity using this online calculator? To use this online calculator for Future Value of Annuity, enter Monthly Payment (p), Interest Rate (i) and Number of Periods (n) and hit the calculate button. Here is how the Future Value of Annuity calculation can be explained with given input values -> 28000 = (28000/6)*((1+6)^1-1).

FAQ

What is 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 and is represented as FVAnnuity = (p/i)*((1+i)^n-1) or future_value_of_annuity = (Monthly Payment/Interest Rate)*((1+Interest Rate)^Number of Periods-1). The monthly payment is the amount a borrower is required to pay each month until a debt is paid off, Interest rate is the amount charged, expressed as a percentage of principal, by a lender to a borrower for the use of assets and The number of periods is the periods on an annuity using the present value, periodic payment, and periodic rate.
How to calculate 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 is calculated using future_value_of_annuity = (Monthly Payment/Interest Rate)*((1+Interest Rate)^Number of Periods-1). To calculate Future Value of Annuity, you need Monthly Payment (p), Interest Rate (i) and Number of Periods (n). With our tool, you need to enter the respective value for Monthly Payment, Interest Rate and Number of Periods and hit the calculate button. You can also select the units (if any) for Input(s) and the Output as well.
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