What is Future Value of Ordinary Annuities and Sinking Funds?
This concept refers to the value that a series of equal periodic payments or receipts will grow to at a future point in time, assuming a certain interest rate or rate of return. In other words, it represents the total amount of money accumulated by making regular deposits or investments over a specified period, with interest compounding on those contributions. The future value of ordinary annuities is commonly used in retirement planning, savings goals, and investment analysis.
This concept refers to the value that a series of equal periodic payments or receipts will grow to at a future point in time, assuming a certain interest rate or rate of return. In other words, it represents the total amount of money accumulated by making regular deposits or investments over a specified period, with interest compounding on those contributions. The future value of ordinary annuities is commonly used in retirement planning, savings goals, and investment analysis.
How to Calculate Future Value of Ordinary Annuities and Sinking Funds?
Future Value of Ordinary Annuities and Sinking Funds calculator uses Future Value of Ordinary Annuity = Cashflow per Period*((1+Rate per Period)^(Total Number of Times Compounded)-1)/Rate per Period to calculate the Future Value of Ordinary Annuity, The Future Value of Ordinary Annuities and Sinking Funds formula is defined as the value that a series of equal periodic payments or receipts will grow to at a future point in time, assuming a certain interest rate or rate of return. Future Value of Ordinary Annuity is denoted by FVO symbol.
How to calculate Future Value of Ordinary Annuities and Sinking Funds using this online calculator? To use this online calculator for Future Value of Ordinary Annuities and Sinking Funds, enter Cashflow per Period (Cf), Rate per Period (r) & Total Number of Times Compounded (nc) and hit the calculate button. Here is how the Future Value of Ordinary Annuities and Sinking Funds calculation can be explained with given input values -> 29397.95 = 1500*((1+0.05)^(14)-1)/0.05.