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Future Value of $1 Annuity Table Creator

Future Value of Annuity Table (FVIFA)

Interest Rates (i) : Columns

Periods (n) : Rows
Answer:
Future Value of an
Ordinary Annuity of $1
\[ FVOA=\frac{\$1}{i}[(1+i)^n-1] \]
n / i
1%
2%
3%
1
1.00000
1.00000
1.00000
2
2.01000
2.02000
2.03000
3
3.03010
3.06040
3.09090
4
4.06040
4.12161
4.18363
5
5.10101
5.20404
5.30914
6
6.15202
6.30812
6.46841
7
7.21354
7.43428
7.66246
8
8.28567
8.58297
8.89234
9
9.36853
9.75463
10.15911
10
10.46221
10.94972
11.46388

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Calculator Use

FVIFA calculator. Calculate the future value interest factor of an annuity (FVIFA) and create a table of FVIFA values. Create a printable compound interest table for the future value of an ordinary annuity or future value of an annuity due for payments of $1.

Future Value of an Annuity

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

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

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

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

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

Future Value of an Annuity Due (FVAD)

If annuity payments are due at the beginning of the period T = 1 and the equation reduces to the formula for future value of an annuity due

\( FVAD=\dfrac{\$1}{i}[(1+i)^n-1](1+i) \)

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 with 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 $1 Annuity Table"; from http://www.calculatorsoup.com - Online Calculator Resource.

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