# What is the future value of annuity formula?

**equation**for the

**future value**of an

**annuity**is for an ordinary

**annuity**paid once each year. The

**formula**is F = P * ([1 + I]^N - 1 )/I. P is the payment

**amount**. I is equal to the interest (discount) rate.

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Also know, what is the future value formula?

The **future value** of an annuity is how much a stream of A dollars invested each year at r interest rate will be **worth** in n years. The **formula** is FV A = A * {(1 + r)n - 1} / r.

Similarly, what is present and future value of annuity? The **present value** of an **annuity** is the sum that must be invested now to guarantee a desired payment in the **future**, while its **future value** is the total which will be achieved over time.

Also question is, how do you calculate the future value of an annuity monthly?

**Future Value** of an **Annuity** where r = R/100, n = mt where n is the total number of compounding intervals, t is the time or number of periods, and m is the compounding frequency per period t, i = r/m where i is the rate per compounding interval n and r is the rate per time unit t.

What is NPV formula?

**Net present value** is used in Capital budgeting to analyze the profitability of a project or investment. It is calculated by taking the difference between the present value of cash inflows and present value of cash outflows over a period of time.