Future Worth of Annuity Calculator

✖Annuity is a financial product or arrangement that involves a series of periodic payments or receipts made at equal intervals.ⓘ Annuity [A]			+10% -10%
✖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.ⓘ Discrete Compound Interest Rate [i]			+10% -10%
✖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.ⓘ Number of Interest Periods [n]			+10% -10%

✖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.ⓘ Future Worth of Annuity [F]

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Formula

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Future Worth of Annuity

Formula

`"F" = "A"*(((1+"i")^("n")-1)/("i"))`

Example

`"2050"="1000"*(((1+"0.05")^("2")-1)/("0.05"))`

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Future Worth of Annuity Solution

STEP 0: Pre-Calculation Summary

Formula Used

Future Worth of an Annuity = Annuity*(((1+Discrete Compound Interest Rate)^(Number of Interest Periods)-1)/(Discrete Compound Interest Rate))
F = A*(((1+i)^(n)-1)/(i))
This formula uses 4 Variables

Variables Used

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

STEP 1: Convert Input(s) to Base Unit

Annuity: 1000 --> No Conversion Required
Discrete Compound Interest Rate: 0.05 --> No Conversion Required
Number of Interest Periods: 2 --> No Conversion Required

STEP 2: Evaluate Formula

Substituting Input Values in Formula

F = A*(((1+i)^(n)-1)/(i)) --> 1000*(((1+0.05)^(2)-1)/(0.05))

Evaluating ... ...

F = 2050

STEP 3: Convert Result to Output's Unit

2050 --> No Conversion Required

FINAL ANSWER

2050 <-- Future Worth of an Annuity

(Calculation completed in 00.004 seconds)

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Created by Heet

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< 9 Interest and Investment Costs Calculators

Present Worth of Annuity

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

Present Worth with Salvage Value of Equipment at 2nd Year Investment

Go Present Worth = Purchase Cost of Equipment-(Annuity)/(1+Interest Rate per Period)-(Annuity)/(1+Interest Rate per Period)^(2)+Salvage Value of Equipment

Future Worth of Perpetuity

Go Future Worth of a Perpetuity = Annuity*(((1+Discrete Compound Interest Rate)^(Number of Interest Periods)-1)/((Discrete Compound Interest Rate)))

Future Worth of Annuity

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

Capitalized Cost

Go Capitalized Cost = Original Cost of Equipment+(Replacement Cost/((1+Discrete Compound Interest Rate)^(Number of Interest Periods)-1))

Future Worth of Annuity given Present Annuity

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

Present Worth for Initial Replacement

Go Present Worth = (Replacement Cost/((1+Interest Rate per Period)^(Number of Interest Periods)-1))

Replacement Cost

Go Replacement Cost = Original Cost of Equipment-Salvage Value of Equipment

Present Worth of Perpetuity

Go Present Worth of a Perpetuity = Annuity/Discrete Compound Interest Rate

Future Worth of Annuity Formula

Future Worth of an Annuity = Annuity*(((1+Discrete Compound Interest Rate)^(Number of Interest Periods)-1)/(Discrete Compound Interest Rate))
F = A*(((1+i)^(n)-1)/(i))

What is Annuity?

An annuity is a financial product or arrangement that involves a series of periodic payments or receipts made at equal intervals. These payments can occur monthly, quarterly, annually, or at other regular time intervals. Annuities are often used as a tool for retirement planning, where individuals make regular contributions during their working years and receive a stream of income during their retirement. There are different types of annuities, including fixed annuities with predetermined payments and variable annuities where the payments are linked to the performance of underlying investments. Annuities provide a way for individuals to convert a lump sum of money into a steady income stream, offering financial security over an extended period. However, the specific terms and features of annuities can vary, and individuals should carefully consider their financial goals and needs before entering into an annuity contract.

How to Calculate Future Worth of Annuity?

Future Worth of Annuity calculator uses Future Worth of an Annuity = Annuity*(((1+Discrete Compound Interest Rate)^(Number of Interest Periods)-1)/(Discrete Compound Interest Rate)) to calculate 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 calculate Future Worth of Annuity using this online calculator? To use this online calculator for Future Worth of Annuity, enter Annuity (A), Discrete Compound Interest Rate (i) & Number of Interest Periods (n) and hit the calculate button. Here is how the Future Worth of Annuity calculation can be explained with given input values -> 3152.5 = 1000*(((1+0.05)^(2)-1)/(0.05)).

FAQ

What is Future Worth of 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 and is represented as F = A*(((1+i)^(n)-1)/(i)) or Future Worth of an Annuity = Annuity*(((1+Discrete Compound Interest Rate)^(Number of Interest Periods)-1)/(Discrete Compound Interest Rate)). Annuity is a financial product or arrangement that involves a series of periodic payments or receipts made at equal intervals, 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 & 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.

How to calculate Future Worth of 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 is calculated using Future Worth of an Annuity = Annuity*(((1+Discrete Compound Interest Rate)^(Number of Interest Periods)-1)/(Discrete Compound Interest Rate)). To calculate Future Worth of Annuity, you need Annuity (A), Discrete Compound Interest Rate (i) & Number of Interest Periods (n). With our tool, you need to enter the respective value for Annuity, Discrete Compound Interest Rate & Number of Interest Periods and hit the calculate button. You can also select the units (if any) for Input(s) and the Output as well.

How many ways are there to calculate Future Worth of an Annuity?

In this formula, Future Worth of an Annuity uses Annuity, Discrete Compound Interest Rate & Number of Interest Periods. We can use 1 other way(s) to calculate the same, which is/are as follows -

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

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