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Ordinary Annuity

2 formulas

Ordinary annuity formulas value a series of equal payments made at the end of each period. Common applications include loan payments, bond coupon payments, and retirement savings contributions. The key distinction is that payments occur at the end of each compounding period.

Present Value of an Annuity

Calculates the present value of a series of equal end-of-year payments.

PVA=PMT×1−(1+k)−nkPVA = PMT \times \frac{1 - (1 + k)^{-n}}{k}

Showing present value, annual

4 ways to solve · 3 compounding methods

Future Value of an Annuity

Calculates the future value of a series of equal end-of-year payments.

FVA=PMT×(1+k)n−1kFVA = PMT \times \frac{(1 + k)^n - 1}{k}

Showing future value, annual

3 ways to solve · 3 compounding methods