# Future Value of $1 Annuity Table Creator

## 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

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.

**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.

- 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