Generally when starting investments we decide to make ongoing contributions to them. I. This brief video I’ll show you how to calculate the future value of an annuity, which represents a series of ongoing equal payments.

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## 19 Comments

Mariam Yaroofwhy you always do it with years TT_TT , can you explain how to do it with days? please..

Hamza Guerfeli1000 ( 1+0.07)^0 isn't = 1000 ! is it ?

a^0 = a don't forget ðŸ™‚

messwhat about unequal payments with same interest rates? for both future and present value.. i got exams 3 days after this ðŸ˜€

Harsha vaswanihow to calculate rate of interest??????????

[if future value of annuity is given and present value time is also given]

SogMoseeWhy didnt you start with the 10,000 as year 0 and do the calculations from left to right? I dont understand.

Jason 56can someone please tell me what the formula is assuming the pmts are equal? I don't want to do this for 25 payments…

HelenKoutsiGreat video but it would help if you specified what type of annuity you were referring to. Is this an ordinary annuity or an annuity due?

Debra Griffithsis this for an ordinary annuity or annuity due?

thres34Why you didn't use formula instead of this long thing?

Tasos Moralesthe formula FV=pmt[(1+r)^n-1/r] could have been used in case we didnt have PV?Â

agroeconomist 77thanks man, where is the episode 39

Ivana GrgicIs it also possible to start with the first year with this calculation: 1000*(1+0.07)^1??

Chenyu XieIn reality, the initial input of $10,000 will remain the same at the end of the fifth year as it's the condition of you getting annuity payments every year.Â

Alanis Business AcademyYou're very welcome!

Ellora Leila A.thank you

Pravar JoshiI thought for future value annuity problems, the PV is always 0…

Emily LeungLife saver

MrAni311Nicely done. insightful!!

Ian ForbesThis is very helpful. I'm at University in the Uk and I have been trying to master the "Present value of Â£1.00 per annum" formula which is designed to make these same calculations but which I find very confusing. I need this technique for a presentation I have to give after the easter break. This method does the same job but is easier to understand.