The Future Value of Annuity calculator computes the future value based on the cash flow (CF), rate of interest per period (r) and the number of periods (t).
INSTRUCTIONS: Choose the preferred currency units and enter the following:
Future Value: The calculator returns the future value in U.S. dollars. However, this can be automatically converted to other currency units via the pull-down menu.
Related Calculators:
The Annuity-Future Value with Continuous Compounding is used to calculate the ending balance on a series of periodic payments that are compounded continuously. It is basically the total sum of future cash flows with interest.
Understanding the future value of annuity with continuous compounding formula requires the understanding of two specific financial and mathematical concepts, which are future value of an annuity and continuous compounding.
Example:
Mr. Edward Ombui wants to know the ending balance after 3 years based on monthly deposits of $500 in his account that has 12% continuous compounding.
Applying the future value of annuity with continuous compounding to this example would return a result of $21558.316. Note that the rate used is 0.01, or 1%, which is the monthly rate for a 12% annual rate. This can be confirmed with the calculator at the top of this page.