Future Worth of Annuity given Present Annuity Solution

STEP 0: Pre-Calculation Summary
Formula Used
Future Worth of an Annuity = Present Worth of an Annuity*((1+Discrete Compound Interest Rate)^(Number of Interest Periods))
F = P*((1+i)^(n))
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.
Present Worth of an Annuity - The Present Worth of an Annuity is a financial metric that represents the current value of a series of equal cash flows or payments received or paid at regular intervals over time.
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
Present Worth of an Annuity: 2723.248 --> 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 = P*((1+i)^(n)) --> 2723.248*((1+0.05)^(2))
Evaluating ... ...
F = 3002.38092
STEP 3: Convert Result to Output's Unit
3002.38092 --> No Conversion Required
FINAL ANSWER
3002.38092 3002.381 <-- Future Worth of an Annuity
(Calculation completed in 00.004 seconds)

Credits

Creator Image
Created by Heet
Thadomal Shahani Engineering College (Tsec), Mumbai
Heet has created this Calculator and 200+ more calculators!
Verifier Image
Verified by Prerana Bakli
University of Hawaiʻi at Mānoa (UH Manoa), Hawaii, USA
Prerana Bakli has verified this Calculator and 1600+ more calculators!

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 given Present Annuity Formula

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

What is Annuity?

An annuity is a financial product or contract that provides a series of payments made at equal intervals. These payments can be made monthly, quarterly, annually, or at other regular intervals. Annuities are often used as a tool for retirement planning and can be purchased from insurance companies or financial institutions.

How to Calculate Future Worth of Annuity given Present Annuity?

Future Worth of Annuity given Present Annuity calculator uses Future Worth of an Annuity = Present Worth of an Annuity*((1+Discrete Compound Interest Rate)^(Number of Interest Periods)) to calculate the Future Worth of an Annuity, Future Worth of Annuity given Present Annuity, refers to the total value of an infinite series of equal cash flows that continue indefinitely into the future, where the present value of these cash flows forms an annuity. Future Worth of an Annuity is denoted by F symbol.

How to calculate Future Worth of Annuity given Present Annuity using this online calculator? To use this online calculator for Future Worth of Annuity given Present Annuity, enter Present Worth of an Annuity (P), Discrete Compound Interest Rate (i) & Number of Interest Periods (n) and hit the calculate button. Here is how the Future Worth of Annuity given Present Annuity calculation can be explained with given input values -> 3152.5 = 2723.248*((1+0.05)^(2)).

FAQ

What is Future Worth of Annuity given Present Annuity?
Future Worth of Annuity given Present Annuity, refers to the total value of an infinite series of equal cash flows that continue indefinitely into the future, where the present value of these cash flows forms an annuity and is represented as F = P*((1+i)^(n)) or Future Worth of an Annuity = Present Worth of an Annuity*((1+Discrete Compound Interest Rate)^(Number of Interest Periods)). The Present Worth of an Annuity is a financial metric that represents the current value of a series of equal cash flows or payments received or paid at regular intervals over time, 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 given Present Annuity?
Future Worth of Annuity given Present Annuity, refers to the total value of an infinite series of equal cash flows that continue indefinitely into the future, where the present value of these cash flows forms an annuity is calculated using Future Worth of an Annuity = Present Worth of an Annuity*((1+Discrete Compound Interest Rate)^(Number of Interest Periods)). To calculate Future Worth of Annuity given Present Annuity, you need Present Worth of an Annuity (P), Discrete Compound Interest Rate (i) & Number of Interest Periods (n). With our tool, you need to enter the respective value for Present Worth of an 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 Present Worth of an 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 = Annuity*(((1+Discrete Compound Interest Rate)^(Number of Interest Periods)-1)/(Discrete Compound Interest Rate))
Let Others Know
Facebook
Twitter
Reddit
LinkedIn
Email
WhatsApp
Copied!