Future Value of $1 Annuity Table Creator
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
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
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
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
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.
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.
- 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