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Future value of an annuity assuming compound interest (individual payment,interest rate,number of payments)
Formula
S
future value of an annuity at time = n
R
value of the individual payments in each compounding period
i
interest rate that would be compounded for each period of time
n
number of payment periods
Formula description
Future value is the value of an asset at a specific date. It measures the nominal future sum of money that a given sum of money is "worth" at a specified time in the future assuming a certain interest rate, or more generally, rate of return; it is the present value multiplied by the accumulation function. The value does not include corrections for inflation or other factors that affect the true value of money in the future. This is used in time value of money calculations.