Future Value of Annuity Due Calculator

Jun 2, 2018
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Future Value of Annuity Due Calculator is used to calculate the Future Value Annuity due which is the future value of a stream of equal and consecutive payments (annuity), assuming the payments are invested at a given rate of interest
Future Value Annuity Due:
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What does Future Value of Annuity Due mean?
The Future Value of Annuity Due formula calculates the value at a future date. It means the value of a sum of cash to be paid on a specific date in the future.
Formula
FV of Annuity Due = (1 + r) x P [((1 + r)n - 1) / r]

Where:-

  • P - Periodic Payment
  • r - Rate per Period
  • n - Number of Periods
Example

Let’s assume an individual wants to calculate the future balance after 5 years. Today being the first deposit; the amount deposited per year is $1,000 and the account with an effective rate of 3% per year. It is important to note that the last cash flow is received one year prior to the end of the 5th year.

According to the formula, the balance after 5 years would be $5468.41.

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History
May 22, 2018
Tool Launched