A lump-sum payment may be combined with a structured settlement in order to meet immediate expenses, such as medical bills, repayment of debts, rehabilitation costs, and the like.
Guidelines to use future value calculator for growing annuity
Number of Periods:
- No of periods are generally no of years in future that you expect your investment to be matured.
- It can either be a whole number or a decimal number in the case of partial period such as months
Example: 2 years and 6 months can be entered as 2.5 years
Interest rate per period:
- Annual nominal interest rate at which the present value of lump sum increases.
- Enter rate in terms of percentage. It should be greater than zero.
Compounding per period:
- The frequency of compounding that occurs in a period.
- It can be annually, half-yearly, monthly, quarterly or daily.
Payment amount:
- Payment amount is the amount of money you are expecting to receive per period.
- It should be greater than zero.
Growth rate per payment:
- Growth rate per payment is the rate at which your annuity is expected to grow per period of payments.
- It should be greater than zero.
Payment frequency:
- Payment frequency is the frequency at which you get paid per period.
- It can be annually, half-yearly, monthly, quarterly or daily.
Payment at period:
- Payment at period is when the payment is made in a period.
- It can either be 'end of period' if the payment is made at the end of the period (Ordinary annuity, in arrears) or 'beginning of period' if the payment is made at the beginning of the period (Annuity due, in advance).
Result:
- The calculated future value of growing annuity.
A growing or increasing annuity is a finite number of cash flows in which the payments increase by a fixed percentage each year.
Calculate your growing annuity in this financial calculator that helps you to determine the estimate of your guaranteed income with an annuity. Computing this growing payout plan FVGA (future value growing annuity) will give you the true value; by this means you can accurately evaluate it to other investment and payment plans.
The formula to calculate the future value of a growing annuity uses these variables: number of periodic payments, the rate per period, payment amount, growth rate per payment and payment frequency. After entering all these details, just with a touch of the button, this tool will derive the result instantly. Calculate the estimate on average with our finance calculator if you are to receive structured settlement as a graduated annuity; this will help you have an idea of the worth.
Future Value can be evaluated for a growing ordinary annuity or for an annuity due. As with the former type, it answers what will be the value of the account at the end of n years and with an annuity due it will calculate the ending value of a number of payments where the first payment is received immediately.