LCM calculator

Growing Annuity Payment using Future Value Calculator

Financial Chemistry Engineering Health More >>

↳

Financial Accounting Banking Business Common Probability Distribution More >>

⤿

Time Value of Money Financial Accounting Capital Budgeting Cash Management More >>

⤿

Future value Basics of Time Value of Money Present Value

✖Future Value is the calculated future value of any investment.ⓘ Future Value [FV]			+10% -10%
✖The Rate per Period is the interest rate charged.ⓘ Rate per Period [r]			+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%
✖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%

✖Initial Payment refers to the first installment or upfront amount paid at the beginning of a financial transaction or contract.ⓘ Growing Annuity Payment using Future Value [PMT_initial]

⎘ Copy

👎

Formula

LaTeX

Reset

👍

Download Future value Formulas PDF PDF Image

Growing Annuity Payment using Future Value Solution

STEP 0: Pre-Calculation Summary

Formula Used

Initial Payment = (Future Value*(Rate per Period-Growth Rate))/(((1+Rate per Period)^(Number of Periods))-((1+Growth Rate)^(Number of Periods)))
PMT_initial = (FV*(r-g))/(((1+r)^(n_Periods))-((1+g)^(n_Periods)))
This formula uses 5 Variables

Variables Used

Initial Payment - Initial Payment refers to the first installment or upfront amount paid at the beginning of a financial transaction or contract.
Future Value - Future Value is the calculated future value of any investment.
Rate per Period - The Rate per Period is the interest rate charged.
Growth Rate - Growth Rate refer to the percentage change of a specific variable within a specific time period, given a certain context.
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: 33000 --> No Conversion Required
Rate per Period: 0.05 --> No Conversion Required
Growth Rate: 0.02 --> No Conversion Required
Number of Periods: 2 --> No Conversion Required

STEP 2: Evaluate Formula

Substituting Input Values in Formula

PMT_initial = (FV*(r-g))/(((1+r)^(n_Periods))-((1+g)^(n_Periods))) --> (33000*(0.05-0.02))/(((1+0.05)^(2))-((1+0.02)^(2)))

Evaluating ... ...

PMT_initial = 15942.0289855072

STEP 3: Convert Result to Output's Unit

15942.0289855072 --> No Conversion Required

FINAL ANSWER

15942.0289855072 ≈ 15942.03 <-- Initial Payment

(Calculation completed in 00.004 seconds)

You are here -

Home » Financial » Financial Accounting » Time Value of Money » Future value » Growing Annuity Payment using Future Value

Credits

Created by Keerthika Bathula

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

Keerthika Bathula has created this Calculator and 100+ more calculators!

Verified by Aashna

IGNOU (IGNOU), India

Aashna has verified this Calculator and 50+ more calculators!

< 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

Growing Annuity Payment using Future Value Formula

LaTeX Go

What is Growing Annuity Payment using Future Value ?

A growing annuity payment using future value refers to a series of periodic payments that increase over time and are compounded to reach a specified future value, accounting for growth or inflation. This concept is crucial in financial planning, especially for long-term investments or retirement savings, as it considers the increasing value of money over time due to factors like interest or growth rates. By understanding the growing annuity payment using future value, individuals and businesses can make strategic decisions regarding their financial goals, ensuring that their savings or investment contributions align with their desired future outcomes while adjusting for the effects of inflation or growth.

How to Calculate Growing Annuity Payment using Future Value?

Growing Annuity Payment using Future Value calculator uses Initial Payment = (Future Value*(Rate per Period-Growth Rate))/(((1+Rate per Period)^(Number of Periods))-((1+Growth Rate)^(Number of Periods))) to calculate the Initial Payment, The Growing Annuity Payment using Future Value represents a series of increasing cash flows at specified intervals, compounded to a future point in time. Initial Payment is denoted by PMT_initial symbol.

How to calculate Growing Annuity Payment using Future Value using this online calculator? To use this online calculator for Growing Annuity Payment using Future Value, enter Future Value (FV), Rate per Period (r), Growth Rate (g) & Number of Periods (n_Periods) and hit the calculate button. Here is how the Growing Annuity Payment using Future Value calculation can be explained with given input values -> 15942.03 = (33000*(0.05-0.02))/(((1+0.05)^(2))-((1+0.02)^(2))).

FAQ

What is Growing Annuity Payment using Future Value?

The Growing Annuity Payment using Future Value represents a series of increasing cash flows at specified intervals, compounded to a future point in time and is represented as PMT_initial = (FV*(r-g))/(((1+r)^(n_Periods))-((1+g)^(n_Periods))) or Initial Payment = (Future Value*(Rate per Period-Growth Rate))/(((1+Rate per Period)^(Number of Periods))-((1+Growth Rate)^(Number of Periods))). Future Value is the calculated future value of any investment, The Rate per Period is the interest rate charged, Growth Rate refer to the percentage change of a specific variable within a specific time period, given a certain context & The Number of Periods is the periods on an annuity using the present value, periodic payment, and periodic rate.

How to calculate Growing Annuity Payment using Future Value?

The Growing Annuity Payment using Future Value represents a series of increasing cash flows at specified intervals, compounded to a future point in time is calculated using Initial Payment = (Future Value*(Rate per Period-Growth Rate))/(((1+Rate per Period)^(Number of Periods))-((1+Growth Rate)^(Number of Periods))). To calculate Growing Annuity Payment using Future Value, you need Future Value (FV), Rate per Period (r), Growth Rate (g) & Number of Periods (n_Periods). With our tool, you need to enter the respective value for Future Value, Rate per Period, Growth Rate & Number of Periods and hit the calculate button. You can also select the units (if any) for Input(s) and the Output as well.

Home

FREE PDFs

🔍 Search