Interactive practice questions
The future value of an annuity can be found using the formula
$FV=a\frac{\left(1+r\right)^n-1}{r}$FV=a(1+r)n−1r
where $a$a is the contribution per period paid at the end of the period, $r$r is the interest rate per compounding period, and $n$n is the number of periods. Use this formula to complete the following future value interest factors table, giving your answers correct to four decimal places:
| Table of future value interest factors | |||||
| Interest rate per period | |||||
| Period | $1%$1% | $2%$2% | $3%$3% | $4%$4% | $5%$5% |
| 1 | $\editable{}$ | $\editable{}$ | $\editable{}$ | $\editable{}$ | $\editable{}$ |
| 2 | $\editable{}$ | $\editable{}$ | $\editable{}$ | $\editable{}$ | $\editable{}$ |
| 3 | $\editable{}$ | $\editable{}$ | $\editable{}$ | $\editable{}$ | $\editable{}$ |
Use the table to find the future value of an annuity in which $\$6000$$6000 is invested every year for $4$4 years at $15%$15% p.a. with interest compounded annually. Give your answer correct to the nearest cent.
Use the table to find the future value of an annuity in which $\$2500$$2500 is invested every 3 months for $5$5 years at $15%$15% p.a. with interest compounded quarterly. Give your answer correct to the nearest cent.
Find the interest generated on an annuity in which $\$3100$$3100 is invested every year for $7$7 years at $15%$15% p.a. with interest compounded annually. Give your answer correct to the nearest cent.