Future value of an annuity

Input(s)

iei_{e}: Effective Interest or Discount Rate (fraction)

t\mathrm{t}: Time (year)

AvA_{v}: Annuity (currency unit)

Output(s)

FvF_{v}: Future Value of an Annuity (currency unit)

Formula(s)

Fv=Av((1+ie)t)1ie\mathrm{F}_{\mathrm{v}}=\mathrm{A}_{\mathrm{v}} * \frac{\left(\left(1+\mathrm{i}_{\mathrm{e}}\right)^{\mathrm{t}}\right)-1}{\mathrm{i}_{\mathrm{e}}}

Reference(s)

Mian, M. A. 2011. Project Economics and Decision Analysis Volume 1: Deterministic Models, Second Edition. Tulsa, Oklahoma: PennWell Corporation. Chapter 2, Page: 51.


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