An ordinary annuity is an investment that usually lasts several years. Over these years the investor makes regular payments into the annuity. The early payments into the investment will have a longer time to earn interest than the later payments. After a length of time has passed, the ordinary annuity has a final value.
|S||Final value of annuity|
|R||Amount of payment|
|r||Annual percentage rate (APR)|
|k||Interest periods per year|
|i = r/k||Percentage rate per interest period|
|n||Number of payments|
Final value after n payments:
S = R(((1 + i)n - 1) / i)
Below is a calculator for the future value of an ordinary annuity.
Enter values below for the above formula. When this page loads the payment amount is $500, the annual percentage rate (APR) is 5.0% (0.05), the payment period is monthly for 4 years.
(Example: For r enter 5.0% as 0.05, etc.)