Growing Annuity-Payment (FV)

Last modified by

on

Jul 24, 2020, 6:28:07 PM

Created by

on

Jul 11, 2014, 10:40:45 AM

I n i t i a l P m t_{GA} = F V \cdot \frac{r - g}{{(1 + r)}^{n} - {(1 + g)}^{n}}

$InitialPmt_"GA" = FV*(r-g)/((1+r)^n - (1+g)^n)$

Future Value (F V)

$"Future Value" (FV)$

Rate per period (r)

$"Rate per period " (r)$

Growth rate (g)

$"Growth rate" (g)$

Number of Periods (n)

$"Number of Periods" (n)$

Notes

The future value of an annuity formula assumes that

1. The rate does not change
2. The first payment is one period away
3. The periodic payment does not change

This equation, Growing Annuity-Payment (FV), is used in 1 page

• Annuity Calculator by EdwardOmbui

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