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Annuity Payment using Future Value Calculator

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Future value Basics of Time Value of Money Present Value

✖Future Value of Annuity is the value of a group of recurring payments at a specified date in the future; these regularly recurring payments are known as an annuity.ⓘ Future Value of Annuity [FV_A]			+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%

✖Annuity Payment is a series of equal periodic cash flows made or received at the end of each period.ⓘ Annuity Payment using Future Value [PMT_Annuity]

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Annuity Payment using Future Value Solution

STEP 0: Pre-Calculation Summary

Formula Used

Annuity Payment = Future Value of Annuity/(((1+Rate per Period)^Number of Periods)-1)
PMT_Annuity = FV_A/(((1+r)^n_Periods)-1)
This formula uses 4 Variables

Variables Used

Annuity Payment - Annuity Payment is a series of equal periodic cash flows made or received at the end of each period.
Future Value of Annuity - Future Value of Annuity is the value of a group of recurring payments at a specified date in the future; these regularly recurring payments are known as an annuity.
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.

STEP 1: Convert Input(s) to Base Unit

Future Value of Annuity: 57540 --> No Conversion Required
Rate per Period: 0.05 --> No Conversion Required
Number of Periods: 2 --> No Conversion Required

STEP 2: Evaluate Formula

Substituting Input Values in Formula

PMT_Annuity = FV_A/(((1+r)^n_Periods)-1) --> 57540/(((1+0.05)^2)-1)

Evaluating ... ...

PMT_Annuity = 561365.853658536

STEP 3: Convert Result to Output's Unit

561365.853658536 --> No Conversion Required

FINAL ANSWER

561365.853658536 ≈ 561365.9 <-- Annuity Payment

(Calculation completed in 00.011 seconds)

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Created by Keerthika Bathula

Indian Institute of Technology, Indian School of mines, Dhanbad (IIT ISM Dhanbad), Dhanbad

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< Future value Calculators

Future Value of Present Sum given Compounding Periods

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

Future Value of Annuity

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

Future Value of Present Sum given Number of Periods

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

Future Value of Present Sum given Total Number of Periods

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

Annuity Payment using Future Value Formula

LaTeX Go

Annuity Payment = Future Value of Annuity/(((1+Rate per Period)^Number of Periods)-1)
PMT_Annuity = FV_A/(((1+r)^n_Periods)-1)

What is Annuity Payment using Future Value?

An annuity payment, in financial terms, refers to a fixed amount of money that is regularly paid out at specific intervals, such as monthly, quarterly, or annually. This payment structure is commonly associated with retirement plans, insurance products, and other long-term investments. The calculation of the annuity payment using the future value formula involves several key components. The future value (FV) of the annuity represents the total value of the investment at a future point in time, while the interest rate per period (r) reflects the rate at which the investment grows over time. Additionally, the number of periods (n) indicates the total number of payment intervals. This calculation helps individuals and institutions plan their financial goals effectively and ensure a steady stream of income in the future.

How to Calculate Annuity Payment using Future Value?

Annuity Payment using Future Value calculator uses Annuity Payment = Future Value of Annuity/(((1+Rate per Period)^Number of Periods)-1) to calculate the Annuity Payment, The Annuity Payment using Future Value formula is defined as the fixed sum of money paid at regular intervals. Annuity Payment is denoted by PMT_Annuity symbol.

How to calculate Annuity Payment using Future Value using this online calculator? To use this online calculator for Annuity Payment using Future Value, enter Future Value of Annuity (FV_A), Rate per Period (r) & Number of Periods (n_Periods) and hit the calculate button. Here is how the Annuity Payment using Future Value calculation can be explained with given input values -> 561365.9 = 57540/(((1+0.05)^2)-1).

FAQ

What is Annuity Payment using Future Value?

The Annuity Payment using Future Value formula is defined as the fixed sum of money paid at regular intervals and is represented as PMT_Annuity = FV_A/(((1+r)^n_Periods)-1) or Annuity Payment = Future Value of Annuity/(((1+Rate per Period)^Number of Periods)-1). Future Value of Annuity is the value of a group of recurring payments at a specified date in the future; these regularly recurring payments are known as an annuity, 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.

How to calculate Annuity Payment using Future Value?

The Annuity Payment using Future Value formula is defined as the fixed sum of money paid at regular intervals is calculated using Annuity Payment = Future Value of Annuity/(((1+Rate per Period)^Number of Periods)-1). To calculate Annuity Payment using Future Value, you need Future Value of Annuity (FV_A), Rate per Period (r) & Number of Periods (n_Periods). With our tool, you need to enter the respective value for Future Value of Annuity, Rate per Period & Number of 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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