Future value of a simple annuity
Use FV = R[(1+i)^n - 1]/i to find the future value of a series of equal annual deposits. Unlimited questions, five difficulty levels, and a full worked solution every time — free.
Try one
Sofia is saving for a used car and deposits $500.00 at the end of every year into an account earning 3% per year, compounded annually. How much will the annuity be worth after 4 years?
FV = R[(1 + i)n - 1] / i
Answer: 2091.81
See one solved, step by step
Chantal is saving for a used car and deposits $1500.00 at the end of every year into an account earning 5% per year, compounded annually. How much will the annuity be worth after 4 years?
FV = R[(1 + i)n - 1] / i
📘 Worked solution
1i = 5100 = 0.05, n = 4 depositsConvert the annual rate to a decimal; n is the number of yearly deposits made.
2FV = R[(1 + i)n - 1] / iThis is the future value formula for a series of equal deposits earning compound interest.
3FV = 1500[(1 + 0.05)4 - 1] / 0.05Substitute the deposit amount, rate, and number of deposits.
4(1 + 0.05)4 ~ 1.2155, FV = 1500(0.2155) / 0.05 ~ 6465.19Evaluate the power first, then finish the calculation. Keep several decimal places here so the final cents don't drift.
5Future value: $6465.19Round money to the nearest cent.
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