Economics
Annuity future value
Annuity future value is the amount that present capital or a stream of payments grows to by the end of a term.
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S = A((1 + i)ⁿ − 1) / i
- 01Given
- 02Calculation
- 03Answer
What it means
The future value of an annuity is the amount accumulated by the end of a term from equal periodic payments plus compound interest. It measures the final capital, not an individual contribution.
How it works and where it is used
This financial-mathematics calculation is used for savings plans, recurring investments, replenishable deposits, retirement capital, and sinking funds.