Future Value (Ordinary Annuity)

vCalc Reviewed
Equation / Last modified by KurtHeckman on 2016/10/21 19:25
`FV = `
Future Value (Ordinary Annuity)
Variable Instructions Datatype
`(PMT)"payment"` Enter the regular payment Decimal (USD)
`(r)"interst per period"` Interest per period as a % Decimal (%)
`(t)"number of payments"` Enter the number of payments Decimal
Rating
ID
vCalc.Future Value (Ordinary Annuity)
UUID
a2a74891-8017-11e4-a9fb-bc764e2038f2

The Future Value of an Ordinary Annuity calculator computes the future value (FV) of a fixed rate annuity based on:

  • (PMT) regular annuity payment,
  • (r) fixed interest rate of return per period, and
  • (t) number of periods defining the duration.

The calculator makes the needed currency conversion and computes the Future Value in U.S. dollars.  However, this can be automatically converted into other currency units (e.g Canadian Dollars) via the pull-down menu.

Description

This formula calculates the future lump-sum value of of an annuity paid in fixed payments (PMT) based on a fixed interest rate (r) over a number of payments (t).  This formula could help an investor decide if they should accept a fixed payment of $20 each month for two years or $500 in a lump sum at the end of the two year period.

See also

Future Value of Annuity

Present Value (Ordinary Annuity)

External Links