Future Value of an Annuity of $1 Table Creator

Future Value Annuity Tables
Annuity Type:
Interest Rate (i) : Columns
Columns (20 max):
Starting Rate: %
Increments: %
Periods (n) : Rows
Rows (50 max):
Starting Period:
Increments:

Table Creator Use

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

Future Value of an Annuity

\[ FV=\frac{PMT}{i}[(1+i)^n-1](1+iT) \]

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.

Future Value of an Ordinary Annuity (FVOA)

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

\[ FVOA=\frac{\$1}{i}[(1+i)^n-1] \]

Future Value of an Annuity Due (FVAD)

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.

  1. Choose Ordinary Annuity
  2. 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
  3. 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
  4. 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.

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