annuities
n
A (1+i) - A = i F Solving for F . . .
F=A
[
𝑛
n
A [(1+i) – 1] / i = F
1+𝑖 −1
𝑖
]
Note that the formula Does
Not account for an Annuity
Invested TODAY “0”
Includes
Annuity Invested
in same period
as F
annuities
If we want to Find A, the Annuity, then
equation becomes . . .
A=F
0
[
𝑖
𝑛
1+𝑖 −1
]
F
1
2
3
4
A?
A?
A?
A ?