Future Value of Growing Annuity Solution

STEP 0: Pre-Calculation Summary
Formula Used
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)
FVGA = Initial Invt*((1+r)^(n)-(1+g)^(n))/(r-g)
This formula uses 5 Variables
Variables Used
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.
Initial Investment - The Initial Investment is the amount required to start a business or a project.
Rate per Period - The Rate per Period is the interest rate charged.
Number of Periods - The Number of Periods is the periods on an annuity using the present value, periodic payment, and periodic rate.
Growth Rate - Growth rates refer to the percentage change of a specific variable within a specific time period, given a certain context.
STEP 1: Convert Input(s) to Base Unit
Initial Investment: 2000 --> No Conversion Required
Rate per Period: 0.5 --> No Conversion Required
Number of Periods: 2 --> No Conversion Required
Growth Rate: 0.2 --> No Conversion Required
STEP 2: Evaluate Formula
Substituting Input Values in Formula
FVGA = Initial Invt*((1+r)^(n)-(1+g)^(n))/(r-g) --> 2000*((1+0.5)^(2)-(1+0.2)^(2))/(0.5-0.2)
Evaluating ... ...
FVGA = 5400
STEP 3: Convert Result to Output's Unit
5400 --> No Conversion Required
FINAL ANSWER
5400 <-- Future Value of Growing Annuity
(Calculation completed in 00.004 seconds)

Credits

Created by Vishnu K
BMS College of Engineering (BMSCE), Bangalore
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9 Future value Calculators

Future Value of Growing Annuity
Go 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)
Annuity Due for Future Value
Go Annuity Due Future Value = Payment Made in Each Period*((1+Rate per Period)^(Number of Periods)-1)/(Rate per Period)*(1+Rate per Period)
Future Value of Present Sum given Compounding Periods
Go Future Value = Present Value*(1+(Rate of Return/Compounding Periods))^(Compounding Periods*Number of Periods)
Future Value of Ordinary Annuities and Sinking Funds
Go Future Value of Ordinary Annuity = Cashflow per Period*((1+Rate per Period)^(Total Number of Times Compounded)-1)/Rate per Period
Future Value with Continuous Compounding
Go Future Value with Continuous Compounding = Present Value*ln(Interest*Number of Compounding Periods)
Future Value of Annuity
Go Future Value of Annuity = (Monthly Payment/Interest Rate)*((1+Interest Rate)^Number of Periods-1)
Future Value of Present Sum given Number of Periods
Go Future Value = Present Value*exp(Rate of Return*Number of Periods)
Future Value of Lumpsum
Go Future Value of Lumpsum = Present Value*(1+Interest Rate per Period)^Number of Periods
Future Value of Present Sum given Total Number of Periods
Go Future Value = Present Value*(1+Interest Rate)^Total Number of Periods

Future Value of Growing Annuity 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)
FVGA = Initial Invt*((1+r)^(n)-(1+g)^(n))/(r-g)

What is Future Value of Growing Annuity?

The concept of a growing annuity is important for planning financial goals that require increasing contributions over time, such as retirement savings or college funds. By understanding how growth rate and time period affect the future value, you can make informed decisions about how much to contribute and when to reach your target amount.

How to Calculate Future Value of Growing Annuity?

Future Value of Growing Annuity calculator 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 calculate 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 FVGA symbol.

How to calculate Future Value of Growing Annuity using this online calculator? To use this online calculator for Future Value of Growing Annuity, enter Initial Investment (Initial Invt), Rate per Period (r), Number of Periods (n) & Growth Rate (g) and hit the calculate button. Here is how the Future Value of Growing Annuity calculation can be explained with given input values -> 5400 = 2000*((1+0.5)^(2)-(1+0.2)^(2))/(0.5-0.2).

FAQ

What is 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 and is represented as FVGA = Initial Invt*((1+r)^(n)-(1+g)^(n))/(r-g) or 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). The Initial Investment is the amount required to start a business or a project, The Rate per Period is the interest rate charged, The Number of Periods is the periods on an annuity using the present value, periodic payment, and periodic rate & Growth rates refer to the percentage change of a specific variable within a specific time period, given a certain context.
How to calculate 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 is calculated using 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 calculate Future Value of Growing Annuity, you need Initial Investment (Initial Invt), Rate per Period (r), Number of Periods (n) & Growth Rate (g). With our tool, you need to enter the respective value for Initial Investment, Rate per Period, Number of Periods & Growth Rate 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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