The formula to calculate Future Value of Annuity (FVA) is:
\[ FVA = \left(\frac{p}{IR \cdot 0.01}\right) \cdot \left((1 + IR \cdot 0.01)^{nPeriods} - 1\right) \]
Where:
Future Value of Annuity is the value of a group of recurring payments at a specified date in the future; these regularly recurring payments are known as an annuity.
Monthly Payment is the amount a borrower is required to pay each month until a debt is paid off.
Interest Rate is the amount charged, expressed as a percentage of the principal, by a lender to a borrower for the use of assets.
Number of Periods is the periods on an annuity using the present value, periodic payment, and periodic rate.
Let's assume the following values:
Using the formula:
\[ FVA = \left(\frac{28000}{5.5 \cdot 0.01}\right) \cdot \left((1 + 5.5 \cdot 0.01)^2 - 1\right) \]
Evaluating:
\[ FVA = 57540 \]
The Future Value of Annuity is 57540.
| Monthly Payment | Interest Rate (%) | Number of Periods | Future Value of Annuity |
|---|---|---|---|
| 27000 | 5% | 1 | 27,000.00 |
| 27000 | 5% | 2 | 55,350.00 |
| 27000 | 5% | 3 | 85,117.50 |
| 27000 | 5% | 4 | 116,373.38 |
| 27000 | 5% | 5 | 149,192.04 |
| 27000 | 5% | 6 | 183,651.65 |
| 27000 | 5% | 7 | 219,834.23 |
| 27000 | 5% | 8 | 257,825.94 |
| 27000 | 5% | 9 | 297,717.24 |
| 27000 | 5% | 10 | 339,603.10 |
| 27000 | 5% | 11 | 383,583.25 |
| 27000 | 5% | 12 | 429,762.42 |
| 27000 | 5.5% | 1 | 27,000.00 |
| 27000 | 5.5% | 2 | 55,485.00 |
| 27000 | 5.5% | 3 | 85,536.67 |
| 27000 | 5.5% | 4 | 117,241.19 |
| 27000 | 5.5% | 5 | 150,689.46 |
| 27000 | 5.5% | 6 | 185,977.38 |
| 27000 | 5.5% | 7 | 223,206.13 |
| 27000 | 5.5% | 8 | 262,482.47 |
| 27000 | 5.5% | 9 | 303,919.01 |
| 27000 | 5.5% | 10 | 347,634.55 |
| 27000 | 5.5% | 11 | 393,754.45 |
| 27000 | 5.5% | 12 | 442,410.95 |
| 27000 | 6% | 1 | 27,000.00 |
| 27000 | 6% | 2 | 55,620.00 |
| 27000 | 6% | 3 | 85,957.20 |
| 27000 | 6% | 4 | 118,114.63 |
| 27000 | 6% | 5 | 152,201.51 |
| 27000 | 6% | 6 | 188,333.60 |
| 27000 | 6% | 7 | 226,633.62 |
| 27000 | 6% | 8 | 267,231.63 |
| 27000 | 6% | 9 | 310,265.53 |
| 27000 | 6% | 10 | 355,881.46 |
| 27000 | 6% | 11 | 404,234.35 |
| 27000 | 6% | 12 | 455,488.41 |
| 28000 | 5% | 1 | 28,000.00 |
| 28000 | 5% | 2 | 57,400.00 |
| 28000 | 5% | 3 | 88,270.00 |
| 28000 | 5% | 4 | 120,683.50 |
| 28000 | 5% | 5 | 154,717.68 |
| 28000 | 5% | 6 | 190,453.56 |
| 28000 | 5% | 7 | 227,976.24 |
| 28000 | 5% | 8 | 267,375.05 |
| 28000 | 5% | 9 | 308,743.80 |
| 28000 | 5% | 10 | 352,180.99 |
| 28000 | 5% | 11 | 397,790.04 |
| 28000 | 5% | 12 | 445,679.54 |
| 28000 | 5.5% | 1 | 28,000.00 |
| 28000 | 5.5% | 2 | 57,540.00 |
| 28000 | 5.5% | 3 | 88,704.70 |
| 28000 | 5.5% | 4 | 121,583.46 |
| 28000 | 5.5% | 5 | 156,270.55 |
| 28000 | 5.5% | 6 | 192,865.43 |
| 28000 | 5.5% | 7 | 231,473.03 |
| 28000 | 5.5% | 8 | 272,204.04 |
| 28000 | 5.5% | 9 | 315,175.27 |
| 28000 | 5.5% | 10 | 360,509.91 |
| 28000 | 5.5% | 11 | 408,337.95 |
| 28000 | 5.5% | 12 | 458,796.54 |
| 28000 | 6% | 1 | 28,000.00 |
| 28000 | 6% | 2 | 57,680.00 |
| 28000 | 6% | 3 | 89,140.80 |
| 28000 | 6% | 4 | 122,489.25 |
| 28000 | 6% | 5 | 157,838.60 |
| 28000 | 6% | 6 | 195,308.92 |
| 28000 | 6% | 7 | 235,027.45 |
| 28000 | 6% | 8 | 277,129.10 |
| 28000 | 6% | 9 | 321,756.85 |
| 28000 | 6% | 10 | 369,062.26 |
| 28000 | 6% | 11 | 419,205.99 |
| 28000 | 6% | 12 | 472,358.35 |
| 29000 | 5% | 1 | 29,000.00 |
| 29000 | 5% | 2 | 59,450.00 |
| 29000 | 5% | 3 | 91,422.50 |
| 29000 | 5% | 4 | 124,993.63 |
| 29000 | 5% | 5 | 160,243.31 |
| 29000 | 5% | 6 | 197,255.47 |
| 29000 | 5% | 7 | 236,118.25 |
| 29000 | 5% | 8 | 276,924.16 |
| 29000 | 5% | 9 | 319,770.37 |
| 29000 | 5% | 10 | 364,758.88 |
| 29000 | 5% | 11 | 411,996.83 |
| 29000 | 5% | 12 | 461,596.67 |
| 29000 | 5.5% | 1 | 29,000.00 |
| 29000 | 5.5% | 2 | 59,595.00 |
| 29000 | 5.5% | 3 | 91,872.72 |
| 29000 | 5.5% | 4 | 125,925.72 |
| 29000 | 5.5% | 5 | 161,851.64 |
| 29000 | 5.5% | 6 | 199,753.48 |
| 29000 | 5.5% | 7 | 239,739.92 |
| 29000 | 5.5% | 8 | 281,925.62 |
| 29000 | 5.5% | 9 | 326,431.53 |
| 29000 | 5.5% | 10 | 373,385.26 |
| 29000 | 5.5% | 11 | 422,921.45 |
| 29000 | 5.5% | 12 | 475,182.13 |
| 29000 | 6% | 1 | 29,000.00 |
| 29000 | 6% | 2 | 59,740.00 |
| 29000 | 6% | 3 | 92,324.40 |
| 29000 | 6% | 4 | 126,863.86 |
| 29000 | 6% | 5 | 163,475.70 |
| 29000 | 6% | 6 | 202,284.24 |
| 29000 | 6% | 7 | 243,421.29 |
| 29000 | 6% | 8 | 287,026.57 |
| 29000 | 6% | 9 | 333,248.16 |
| 29000 | 6% | 10 | 382,243.05 |
| 29000 | 6% | 11 | 434,177.64 |
| 29000 | 6% | 12 | 489,228.29 |