Future Worth of Annuity Solution

STEP 0: Pre-Calculation Summary
Formula Used
Future Worth of an Annuity = Annuity*(((1+Discrete Compound Interest Rate)^(Number of Interest Periods)-1)/(Discrete Compound Interest Rate))
F = A*(((1+i)^(n)-1)/(i))
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.
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 = A*(((1+i)^(n)-1)/(i)) --> 1000*(((1+0.05)^(2)-1)/(0.05))
Evaluating ... ...
F = 2050
STEP 3: Convert Result to Output's Unit
2050 --> No Conversion Required
FINAL ANSWER
2050 <-- Future Worth of an Annuity
(Calculation completed in 00.005 seconds)

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Interest and Investment Costs Calculators

Future Worth of Perpetuity
​ LaTeX ​ 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
​ LaTeX ​ Go Future Worth of an Annuity = Annuity*(((1+Discrete Compound Interest Rate)^(Number of Interest Periods)-1)/(Discrete Compound Interest Rate))
Capitalized Cost
​ LaTeX ​ 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
​ LaTeX ​ Go Future Worth of an Annuity = Present Worth of an Annuity*((1+Discrete Compound Interest Rate)^(Number of Interest Periods))

Future Worth of Annuity Formula

​LaTeX ​Go
Future Worth of an Annuity = Annuity*(((1+Discrete Compound Interest Rate)^(Number of Interest Periods)-1)/(Discrete Compound Interest Rate))
F = A*(((1+i)^(n)-1)/(i))

What is Annuity?

An annuity is a financial product or arrangement that involves a series of periodic payments or receipts made at equal intervals. These payments can occur monthly, quarterly, annually, or at other regular time intervals. Annuities are often used as a tool for retirement planning, where individuals make regular contributions during their working years and receive a stream of income during their retirement. There are different types of annuities, including fixed annuities with predetermined payments and variable annuities where the payments are linked to the performance of underlying investments. Annuities provide a way for individuals to convert a lump sum of money into a steady income stream, offering financial security over an extended period. However, the specific terms and features of annuities can vary, and individuals should carefully consider their financial goals and needs before entering into an annuity contract.

How to Calculate Future Worth of Annuity?

Future Worth of Annuity calculator uses Future Worth of an Annuity = Annuity*(((1+Discrete Compound Interest Rate)^(Number of Interest Periods)-1)/(Discrete Compound Interest Rate)) to calculate the Future Worth of an Annuity, The Future Worth of Annuity formula is defined as 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. Future Worth of an Annuity is denoted by F symbol.

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

FAQ

What is Future Worth of Annuity?
The Future Worth of Annuity formula is defined as 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 and is represented as F = A*(((1+i)^(n)-1)/(i)) or Future Worth of an Annuity = 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 Annuity?
The Future Worth of Annuity formula is defined as 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 is calculated using Future Worth of an Annuity = Annuity*(((1+Discrete Compound Interest Rate)^(Number of Interest Periods)-1)/(Discrete Compound Interest Rate)). To calculate Future Worth of Annuity, 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.
How many ways are there to calculate Future Worth of an Annuity?
In this formula, Future Worth of an Annuity uses 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 = Present Worth of an Annuity*((1+Discrete Compound Interest Rate)^(Number of Interest Periods))
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