Future value of a growing annuity
Description
Future value is the value of an asset or cash at a specified date in the future, based on the value of that asset in the present.
Future value of an annuity is the future value of a stream of payments (annuity), assuming the payments are invested at a given rate of interest.
The future value of a growing annuity formula has five variables.
Variables
| FVgA | Future value of the growing annuity (dimensionless) |
| A | The value of the individual payments in each compounding period (dimensionless) |
| i | The discount rate, or the interest rate at which the amount will be compounded each period (dimensionless) |
| n | The number of periods (dimensionless) |
| g | The growing rate of payments over each time period (dimensionless) |