The purpose of the future value annuity tables is to perform annuity calculations without the use of a financial calculator.
The tables provide the value at the end of period n of an amount of 1 received at the end of each period for n periods at a discount rate of i%.
The future value of an annuity formula is:
FV = Pmt x ((1 + i)n - 1) / i
Future value annuity tables are used to provide a solution for the part of the formula above shown in red. Additionally this is sometimes referred to as the future value annuity factor.
FV = Pmt x Future value annuity factorFV Annuity Tables Example
To illustrate suppose an amount of 6,000 is received at the end of each year for 8 years. Additionally assume the discount rate is 4%. The calculation of the future value of the annuity is as follows.
Pmt = 6,000 n = 8 i = 4% FV = Pmt x ((1 + i)n - 1) / i FV = 6,000 x ((1 + 4%)8) / 4% FV = 6,000 x Future value of annuity factor for n = 8, i = 4% FV = 6,000 x 9.2142 FV = 55,285.20
As can be seen the future value annuity factor is 9.2142 . This factor is found using the tables. The process is to look along the row for n = 8 until you reach the column for i = 4%. This is highlighted in yellow in the table below.
Future Value Annuity Tables Download
The future value annuity table is available for download in PDF format by following the link below.
Future value annuity tables are one of many time value of money tables, discover another at the links below.
Users use these annuity tables at their own risk. We make no warranty or representation as to its accuracy. Additionally we are covered by the terms of our legal disclaimer, which you are deemed to have read. This is an example of a future value of an annuity table that you might use when considering how to calculate annuity values. It is purely illustrative of a future value of annuity table. This is not intended to reflect general standards or targets for any particular business, company or sector. If you do spot a mistake in these time value of money tables, please let us know and we will try to fix it.
About the Author
Chartered accountant Michael Brown is the founder and CEO of Double Entry Bookkeeping. He has worked as an accountant and consultant for more than 25 years and has built financial models for all types of industries. He has been the CFO or controller of both small and medium sized companies and has run small businesses of his own. He has been a manager and an auditor with Deloitte, a big 4 accountancy firm, and holds a degree from Loughborough University.