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Create a printable compound interest table for the future value of an annuity due or an ordinary annuity of $1.

where i is the interest rate per period and n is the total number of periods with compounding occurring once per period.

Since the annuity is payments of $1, PMT = $1 and we have

\[ FV=\frac{\$1}{i}[(1+i)^n-1](1+iT) \]T represents the type. (similar to Excel formulas) If payments are at the end of the period it is an ordinary annuity and we set T = 0. If payments are at the beginning of the period it is an annuity due and we set T = 1.

If type is ordinary, T = 0 and the equation reduces to the formula for future value of an ordinary annuity

\[ FVOA=\frac{\$1}{i}[(1+i)^n-1] \]otherwise T = 1 and the equation reduces to the formula for future value of an annuity due

\[ FVAD=\frac{\$1}{i}[(1+i)^n-1](1+i) \]where FVAD and FVOA are the future value, PMT is the recurring, identical, cash **payment** = $1, i is the interest rate in decimal form and n is the period number.

**Example**

**Ordinary Annuity:** You want to invest $5,000 at the end of every year into an account getting an annual interest rate of 4%. What will be the value of your account at the end of 10, 15 and 20 years? These regular payments are an annuity.

- Choose Ordinary Annuity
- Create a table that includes i = 4% and n = 10, 15 and 20
- Start 10 columns at 1% with 1% increments
- Start 11 rows at 10 with increments of 1
- Look up FVOA to find
- 4% @ 10 is 12.00611 and calculate $5,000 * 12.00611 = $60,030.55 at the end of 10 years
- 4% @ 15 is 20.02359 and calculate $5,000 * 20.02359 = $100,117.95 at the end of 15 years
- 4% @ 20 is 29.77808 and calculate $5,000 * 29.77808 = $148,890.40 at the end of 20 years
- You can use these factors to easily compare other amounts. Let's say you might only invest $2,500 each year for 10 years
- 4% @ 10 is 12.00611 and calculate $2,500 * 12.00611 = $30,015.38 at the end of 10 years

**Cite this content, page or calculator as:**

Furey, Edward "Future Value of an Annuity of $1 Table Creator" From *http://www.CalculatorSoup.com* - Online Calculator Resource.