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Future Value of Growing Annuity Calculator

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Future value Basics of Time Value of Money Present Value

✖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]

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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)

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< Future value Calculators

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Future Value of Present Sum given Number of Periods

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Future Value of Present Sum given Total Number of Periods

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Future Value of Growing Annuity Formula

LaTeX Go

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.

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