This Formula Calculator calculates the future value of series of payment that increase at a constant rate with the first payment at the beginning of period 0.
Formula: fv(fcRate / 100, fcNPer, 0, -pv((1 + fcRate / 100) / (1 + fcGrowth / 100) - 1, fcNper, fcPmt, 0, 1), 0)
FV / fcFv : The future value.
N / fcNper : The number of periods.
i% / fcRate : The periodic rate.
PMT / fcPmt : The base periodic payment at the beginning of period zero. This payment increases by g% each period.
g% / fcGrowth : The periodic growth rate of the payment.
You are going to deposit $1,000 into an account that pays 8%, and then increase the annual deposits by 5% for a total of 5 deposits. What will the amount of the account be in 5 years (future value), one year after the final deposit.
Value | Keystrokes | Display | Description |
---|---|---|---|
5 | N | 5.00 | Stores the N value. |
8 | i% | 8.00 | Stores the i% value. |
-1000 | PMT | -1,000.00 | Stores the PMT value. |
3 | g% | 3.00 | Stores the g% value. |
FV | 6,697.17 | Calculates the future value. |
For example 1, if you need the future value to be $7,000, what base payment is needed?
Value | Keystrokes | Display | Description |
---|---|---|---|
7000 | FV | 7,000.00 | Stores the FV value. |
PMT | -1045.20 | Calculates the PMT value. |
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