Future value of an annuity

Future value of an annuity,

Definition of Future value of an annuity:

  1. Because of the time value of money, money received or paid out today is worth more than the same amount of money will be in the future. That's because the money can be invested and allowed to grow over time. By the same logic, a lump sum of $5,000 today is worth more than a series of five $1,000 annuity payments spread out over five years.

  2. The future value of an annuity may be calculated based on a given yearly or monthly compound interest rate assuming the same dollar amount is invested each year. The equation for determining the future value in such circumstances is: FV = PV x (1+i)t. Where:

    PV = present value, FV = future value, i = interest, and t = time.

    For example, an annuity investment today of $200 (with an additional $200 invested each subsequent year) with a compound interest rate of 3% would have an approximate value of $2600 in ten years.

  3. The future value of an annuity is the value of a group of recurring payments at a certain date in the future, assuming a particular rate of return, or discount rate. The higher the discount rate, the greater the annuity's future value.

How to use Future value of an annuity in a sentence?

  1. The future value of an annuity is a way of calculating how much money a series of payments will be worth at a certain point in the future.
  2. In an ordinary annuity, payments are made at the end of each agreed-upon period. In an annuity due, payments are made at the beginning of each period.
  3. By contrast, the present value of an annuity measures how much money will be required to produce a series of future payments.

Meaning of Future value of an annuity & Future value of an annuity Definition

Future Value Of An Annuity,

What is Future Value Of An Annuity?

  1. Future Value Of An Annuity refers to An annual future price is the price of a group of recurring payments on a specific future date, assuming a certain rate of return or rebate. The higher the discount rate, the higher the annual future value.

    • The future value of an annual is a way of calculating the value of a series of payments at a later date.
    • In contrast, the current value of an annual measure measures how much it will cost to make future payments.
    • Payment is made at the end of each agreed term, with regular announcements. If there is an annual payment outstanding, payment will be made at the beginning of each term.

Literal Meanings of Future Value Of An Annuity

Future:

Meanings of Future:
  1. The time or period from which the time has come after the time of speaking or writing.

  2. Continuity or possibly will occur at a later date.

Synonyms of Future

time to come, time ahead, to come, ensuing, succeeding, following, subsequent, coming, upcoming, later

Value:

Meanings of Value:
  1. Respect that something should be worthwhile, valuable or useful.

  2. Principles or principles of a person's behavior decide something important in life.

  3. A numerical quantity indicated by algebraic terms, quantities, quantities or numbers.

  4. Appreciate financial value (something)

Sentences of Value
  1. Rhythm values ​​are fourth, eighth, and middle notes, and already only key finger patterns are used in the course.

Synonyms of Value

standards of behaviour, cherished, rate, help, utility, advantage, assistance, sense, worth, code of behaviour, profit, precious, ethics, morals, importance, standards, point, merit, principles, moral values, efficacy, prized, moral principles, worth one's weight in gold, rules of conduct, use, desirability, favourite, treasured

Of:

Meanings of Of:
  1. Indicates an association between two entities, usually a member entity.

  2. It shows the relationship between the address and the historical landmark.

  3. Express the relationship between a general type or type and the specific items that fall into this category.

Synonyms of Of

made by, carried out by, caused by, in, by, done by, of, from

An:

Meanings of An:
  1. Use an indefinite article before words beginning with a letter

  2. Andaman and Nicobar Islands.

Annuity:

Meanings of Annuity:
  1. Usually for a lifetime, someone is paid a certain amount every year.

Sentences of Annuity
  1. You voluntarily give up your 1000 pension

Synonyms of Annuity

upkeep, stipend, annuity, remittance, sum of money, subsistence, contribution, handout, maintenance, expenses, subsidy, payment, pension, keep, financial support, consideration, grant, pocket money, benefit