What is the future value of annuity formula?
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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.