Annuity Due-Payment (FV)

The Annuity Due-Payment (FV) computes the regular payment (P) required in an annuity to achieve a future value (FV) after a number of periods (n) at a constant growth rate per period (r).

INSTRUCTIONS: Choose the preferred currency units and enter the following:

• (FV) This is the Future Value
• (r) This is the interest rate per period.
• (n) This is the number of periods.

Annuity Payment: The calculator returns the regular payment in U.S. dollars.  However, this can be automatically converted to other currency units via the pull-down menu.

The Math / Science

The annuity due-payment (FV) formula is used to calculate each equal cash flow or payment of a series of cash flows when the future value is known.  The formula is as follows:

`P = FV * r/((1+r)^n - 1) * 1/(1+r)`

where:

• FV = Future Value
• r = rate per period
• n= number of periods

Example:

Mrs. Juliet would like to have $5,000 saved within 5 years. She plans on making equal deposits per year starting today into an account that has an effective annual rate of 3%.

Using the annuity due payment formula (future value), the amount to be deposited per year, starting today, would be $914.343.