How to Calculate the Future Value of an Annuity | Episode 39

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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

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

  2. 1000 ( 1+0.07)^0 isn't = 1000 ! is it ?
    a^0 = a don't forget 🙂

  3. what about unequal payments with same interest rates? for both future and present value.. i got exams 3 days after this 😀

  4. how to calculate rate of interest??????????
    [if future value of annuity is given and present value time is also given]

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

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

  7. Great 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?

  8. is this for an ordinary annuity or annuity due?

  9. Why you didn't use formula instead of this long thing?

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

  11. thanks man, where is the episode 39

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

  13. In 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. 

  14. I thought for future value annuity problems, the PV is always 0…

  15. Nicely done. insightful!!

  16. This is very helpful. I'm at University in the Uk and I have been trying to master the "Present value of £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.

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