LaTeX
FV=PMT\frac{(1+r)^n-1}{r}Variables
- PMT: payment per period
- r: rate per period
- n: number of payments
How to use this formula
Computes the future value of equal end-of-period payments.
Important notes
- For payments at the beginning, multiply by 1+r.
- The formula assumes a constant rate and payment.
Quick example
Ten annual payments of 100 at 5% accumulate to 100((1.05)^10−1)/0.05.
Applicability, worked calculation, and verification
Assumptions and domain checks
- For payments at the beginning, multiply by 1+r.
- For the Future Value of Ordinary Annuity, every denominator must be nonzero, and the numerator and denominator must remain correctly grouped.
- Match the interest rate to the compounding period, convert percentages to decimals, and keep cash-flow timing consistent.
Worked example
Ten annual payments of 100 at 5% accumulate to 100((1.05)^10−1)/0.05.
Common mistakes
- When copying Future Value of Ordinary Annuity, keep the complete numerator and denominator grouped; a missing brace or parenthesis changes the result.
- Verify the result of Future Value of Ordinary Annuity with a known case, inverse operation, dimensional check, or independent calculation before publishing it.
Continue the workflow
Use Future Value of Ordinary Annuity in your own work
- Check the domainMatch the variables and assumptions to the problem before substituting values.
- Copy the exact notationPreserve grouping, signs, and exponents in
FV=PMT\frac{(1+r)^n-1}{r}. - Edit or convertOpen the expression in the LaTeX editor, then export it for your document or web page.
Review and verification
Last reviewed: 2026-07-23
Automated quality check: Kept noindex until the missing evidence is supplied.
Formula references
- Algebra and Trigonometry 2eOpenStax, Rice University — Reviewed algebra, functions, sequences, trigonometry, and analytic geometry definitions and examples.
Frequently asked questions
What is the Future Value of Ordinary Annuity used for?
Computes the future value of equal end-of-period payments.
Can I copy this formula as LaTeX?
Yes. Copy FV=PMT\frac{(1+r)^n-1}{r} or open it in the LaTeX editor.
What should I check before using it?
Confirm that each variable, unit, domain restriction, and assumption matches the problem.