answersLogoWhite

0


Best Answer

FVoa = PMT [((1 + i)n - 1) / i]

FVoa = Future Value of an Ordinary AnnuityPMT = Amount of each paymenti = Interest Rate Per Periodn = Number of Periods

User Avatar

Wiki User

12y ago
This answer is:
User Avatar

Add your answer:

Earn +20 pts
Q: What is the formula for future value of ordinary annuity?
Write your answer...
Submit
Still have questions?
magnify glass
imp
Related questions

The future value of an annuity due is always greater than the future value of an otherwise identical ordinary annuity True or false?

true


What is the difference between ordinary annuity and annuity due?

In an ordinary annuity, the payments are fed into the investment at the END of the year. In an annuity due, the payments are made at the BEGINNING of the year. Therefore, with an annuity due, each annuity payment accumulates an extra year of interest. This means that the future value of an annuity due is always greater than the future value of an ordinary annuity.When computing present value, each payment in an annuity due is discounted for one less year (because one of the payments is not made in the future- it is made at the beginning of this year and is already in terms of present dollars). This will result in a larger present value for an annuity due than for an ordinary annuity, as well.


Differentiate between ordinary annuity and annuity due?

In an ordinary annuity, the annuity payments are fed into the investment at the END of the year. In an annuity due, the payments are made at the BEGINNING of the year. Therefore, with an annuity due, each annuity payment accumulates an extra year of interest. This means that the future value of an annuity due is always greater than the future value of an ordinary annuity.When computing present value, each payment in an annuity due is discounted for one less year (because one of the payments is not made in the future- it is made at the beginning of this year and is already in terms of present dollars). This will result in a larger present value for an annuity due than for an ordinary annuity, as well.


How is present value annuity factor calculated?

The present value annuity formula is used to simplify the calculation of the current value of an annuity. A table is used where you find the actual dollar amount of the annuity and then this amount is multiplied by a value to get the future value of that same annuity.


When there is only one compounding period in a ordinary annuity the table factor for future value is always 1?

True


What happens to the present value of an annuity if the future value of an annuity is increased?

It increases


What is the Difference between the future value of annuity and sinking fund?

future value of an annuity is a reciprocal of a sinking fund


How do you define the value of value?

I need a answer how do you know when to use future value or present value and future value of a annuity and present value of annuity Please help


What is the future value on an ordinary annuity of 12000 dollars per year for three years at 9 percent interest compounded annually?

39,337.20


What is the present value of 3 year annuity of 100 if discount rate is 6%?

The formula for the present value of an annuity due. The present value of an annuity due is used to derive the current value of a series of cash payments that are expected to be made on predetermined future dates and in predetermined amounts.


What happens to the future value of an annuity if you increase the rate?

The future value will go up.


Where can you buy an annuity value calculator?

You can not buy an annuity value calculator. It is a tool used in the financial industry to figure out future values or fixed payments. You can use a scientific calculator to figure this out. Just key in the correct formula and you will have your answer.