Future Worth of Perpetuity 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 a Perpetuity is a financial metric that represents the total value of an infinite series of equal cash flows where the cash flows continue indefinitely into the future.ⓘ Future Worth of Perpetuity [F_P]

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Formula

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Future Worth of Perpetuity

Formula

`"F"_{"P"} = "A"*(((1+"i")^("n")-1)/(("i")))`

Example

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

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Future Worth of Perpetuity Solution

STEP 0: Pre-Calculation Summary

Formula Used

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

Variables Used

Future Worth of a Perpetuity - The Future Worth of a Perpetuity is a financial metric that represents the total value of an infinite series of equal cash flows where the cash flows continue indefinitely into the future.
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_P = A*(((1+i)^(n)-1)/((i))) --> 1000*(((1+0.05)^(2)-1)/((0.05)))

Evaluating ... ...

F_P = 2050

STEP 3: Convert Result to Output's Unit

2050 --> No Conversion Required

FINAL ANSWER

2050 <-- Future Worth of a Perpetuity

(Calculation completed in 00.005 seconds)

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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 Perpetuity Formula

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

What is Investment Cost ?

Investment costs, also known as capital costs or capital expenditures, refer to the expenses incurred by individuals, businesses, or organizations to acquire, upgrade, or maintain physical assets or financial instruments with the expectation of generating future income, appreciation, or other benefits. These costs are typically associated with long-term investments aimed at enhancing productivity, generating revenue, or achieving specific strategic goals.

How to Calculate Future Worth of Perpetuity?

Future Worth of Perpetuity calculator uses Future Worth of a Perpetuity = Annuity*(((1+Discrete Compound Interest Rate)^(Number of Interest Periods)-1)/((Discrete Compound Interest Rate))) to calculate the Future Worth of a Perpetuity, The Future Worth of Perpetuity, is a financial metric that represents the total value of an infinite series of equal cash flows or payments received or paid at regular intervals, where the cash flows continue indefinitely into the future. Future Worth of a Perpetuity is denoted by F_P symbol.

How to calculate Future Worth of Perpetuity using this online calculator? To use this online calculator for Future Worth of Perpetuity, 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 Perpetuity calculation can be explained with given input values -> 3152.5 = 1000*(((1+0.05)^(2)-1)/((0.05))).

FAQ

What is Future Worth of Perpetuity?

The Future Worth of Perpetuity, is a financial metric that represents the total value of an infinite series of equal cash flows or payments received or paid at regular intervals, where the cash flows continue indefinitely into the future and is represented as F_P = A*(((1+i)^(n)-1)/((i))) or Future Worth of a Perpetuity = 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 Perpetuity?

The Future Worth of Perpetuity, is a financial metric that represents the total value of an infinite series of equal cash flows or payments received or paid at regular intervals, where the cash flows continue indefinitely into the future is calculated using Future Worth of a Perpetuity = Annuity*(((1+Discrete Compound Interest Rate)^(Number of Interest Periods)-1)/((Discrete Compound Interest Rate))). To calculate Future Worth of Perpetuity, 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.

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