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Suppose you are planning to make regular contributions in equal payments to an investment fund for your retirement. Which formula would you use to figure out how much your investments will be worth at retirement time, given an assumed rate of return on your investments?
To figure out how greatly your investment will be worth at retirement time, specified an assumed rate of return on your investments, you would utilize the future value of an annuity formula:
Future Value of an Annuity Formula
where: FVA = Future Value of an Annuity
PMT = Amount of each annuity payment
k = Interest rate per time period
n = Number of annuity payments
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