Future Value of Annuity Calculator is an online investment returns assessment tool to determine the time value of money. Annuity value, interest rate and time period are the key factors to figure out the future value of an annuity. The term future value of annuity is used in investment plans to describe an amount that will not exist until the specific period of time is completed. Generally the first time period for the annuity amount will not be considered for interest. For example, let's consider that you are making $1000 at the starting of every year with 10% of interest rate for 5 years. For the first year ending the interest will not be applicable and the interest will be calculated and compounded to the principal amount from the end of second year onwards. So at the end of the first year the time value on the money deposited will only be $1000 as you have originally deposited. In second year the value of your deposits will be $2100. At the end of 5th year the future value of an annuity will be $ 6105.10. The below formula is used in future value of annuity calculator to figure out the time value of money at the end of the total time period
P is the regular payments
R is the percentage rate of compound interest
n is the total number of years.