Future Value of Growing Annuity Calculator

✖The Initial Investment is the amount required to start a business or a project.ⓘ Initial Investment [II]			+10% -10%
✖The Rate per Period is the interest rate charged.ⓘ Rate per Period [r]			+10% -10%
✖The Number of Periods is the periods on an annuity using the present value, periodic payment, and periodic rate.ⓘ Number of Periods [n_Periods]			+10% -10%
✖Growth Rate refer to the percentage change of a specific variable within a specific time period, given a certain context.ⓘ Growth Rate [g]			+10% -10%

✖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.ⓘ Future Value of Growing Annuity [FV_GA]

⎘ Copy

👎

Formula

✖

Future Value of Growing Annuity

Formula

`"FV"_{"GA"} = "II"*((1+"r")^("n"_{"Periods"})-(1+"g")^("n"_{"Periods"}))/("r"-"g")`

Example

`"4140"="2000"*((1+"0.05")^("2")-(1+"0.02")^("2"))/("0.05"-"0.02")`

Calculator

LaTeX

Reset

👍

Download Time Value of Money Formulas PDF PDF Image

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)
FV_GA = II*((1+r)^(n_Periods)-(1+g)^(n_Periods))/(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 Rate 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: 0.05 --> No Conversion Required
Number of Periods: 2 --> No Conversion Required
Growth Rate: 0.02 --> No Conversion Required

STEP 2: Evaluate Formula

Substituting Input Values in Formula

FV_GA = II*((1+r)^(n_Periods)-(1+g)^(n_Periods))/(r-g) --> 2000*((1+0.05)^(2)-(1+0.02)^(2))/(0.05-0.02)

Evaluating ... ...

FV_GA = 4140

STEP 3: Convert Result to Output's Unit

4140 --> No Conversion Required

FINAL ANSWER

4140 <-- Future Value of Growing Annuity

(Calculation completed in 00.004 seconds)

You are here -

Home » Financial » Financial Accounting » Time Value of Money » Future value » Future Value of Growing Annuity

Credits

Created by Vishnu K

BMS College of Engineering (BMSCE), Bangalore

Vishnu K has created this Calculator and 200+ more calculators!

Verified by Nayana Phulphagar

Institute of Chartered and Financial Analysts of India National college (ICFAI National College), HUBLI

Nayana Phulphagar has verified this Calculator and 1400+ more calculators!

< 14 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)

Growing Annuity Payment using Future Value

Go Initial Payment = (Future Value*(Rate per Period-Growth Rate))/(((1+Rate per Period)^(Number of Periods))-((1+Growth Rate)^(Number of Periods)))

Number of Periods using Future Value

Go Number of Periods = ln(1+((Future Value of Annuity*Rate per Period)/Cashflow per Period))/ln(1+Rate per Period)

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*0.01)/Compounding Periods))^(Compounding Periods*Number of Periods)

Future Value of Annuity with Continuous Compounding

Go FV of Annuity with Continuous Compounding = Cashflow per Period*((e^(Rate per Period*Number of Periods)-1)/(e^(Rate per Period)-1))

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 of Annuity

Go Future Value of Annuity = (Monthly Payment/(Interest Rate*0.01))*((1+(Interest Rate*0.01))^Number of Periods-1)

Future Value with Continuous Compounding

Go Future Value with Continuous Compounding = Present Value*(e^(Rate of Return*Number of Compounding Periods*0.01))

Future Value of Present Sum given Number of Periods

Go Future Value = Present Value*exp(Rate of Return*Number of Periods*0.01)

Future Value of Lumpsum

Go Future Value of Lumpsum = Present Value*(1+Interest Rate per Period)^Number of Periods

Annuity Payment using Future Value

Go Annuity Payment = Future Value of Annuity/(((1+Rate per Period)^Number of Periods)-1)

Future Value of Present Sum given Total Number of Periods

Go Future Value = Present Value*(1+(Rate of Return*0.01))^Number of Periods

Future Value Factor

Go Future Value Factor = (1+Rate per Period)^Number of Periods

Future Value of Growing Annuity Formula

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 FV_GA 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 (II), Rate per Period (r), Number of Periods (n_Periods) & 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 -> 4500 = 2000*((1+0.05)^(2)-(1+0.02)^(2))/(0.05-0.02).

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 FV_GA = II*((1+r)^(n_Periods)-(1+g)^(n_Periods))/(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 Rate 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 (II), Rate per Period (r), Number of Periods (n_Periods) & 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.

Home

FREE PDFs

🔍 Search