个人理财 Section 1 (Time Value of Money).pptVIP

* * * * * * * * 2-* Future Value of an Annuity FVA = PMT x (((1 + I)n – 1) / I) To determine the future value of a series of equal amounts received or paid over a specified number of years. Example: How much will you have at the end of three years if you make annual deposits of $500 each compounded annually at 8%? FVA = 500[(1 + .08)3 - 1] / .08 FVA = 500 [(1.08)3 - 1] / .08 FVA = 500 (1.26 - 1) / .08 FVA = 500 (.26) / .08 FVA = 500 (3.25) FVA = $1,623.20 (rounding factor) 2-* Similar to the example given of the future value of 1, the amount can be determined by using a future value of