future inflation rate calculator

The last term on the right side of the equation, PMT(1+i)n-1(1+g)n-n, is the present value of a future sum at a periodic interest rate i where n is the number of periods in the future. The mathematical equation used in the future value calculator is, For each period into the future the accumulated value increases by an additional factor (1 + i). This calculation is based on future inflation assumption of 3.00% per year. equivalent rate to coincide with payments then n and i are recalculated in terms of payment frequency, q. Ltd. This means that $10 in a savings account today will be worth $10.60 one year later. first payment of the series made at the end of the first period and growth is not applied to the first Check out our Top Performing Lumpsum Mutual Funds All rights reserved. Inflation over time does erode the value of money. This can be written more generally as. multiply both sides of this equation by (1 + i) to get, subtracting equation (2a) from (2b) most terms cancel and we are left with, cancelling 1's on the left then dividing through by i, the future value of an ordinary annuity, payments made at the end of each period, is, For an annuity due, payments made at the beginning of each period instead of the end, therefore payments are now 1 period further from the Send this article to the following email id. Future Value with Perpetuity or Growing Perpetuity (t → ∞ and n = mt → ∞). \( FV_{3}=PV_{3}(1+i)(1+i)(1+i)=PV_{3}(1+i)^{3} \), \( PV_{n}=\dfrac{FV_{n}}{(1+i)^n}\tag{1b} \), \( FV=PMT+PMT(1+i)^1+PMT(1+i)^2+...+PMT(1+i)^{n-1}\tag{2a} \), \( FV(1+i)=PMT(1+i)^1+PMT(1+i)^2+PMT(1+i)^3+...+PMT(1+i)^{n}\tag{2b} \), \( FV=\dfrac{PMT}{i}((1+i)^n-1)\tag{2c} \), \( FV=\dfrac{PMT}{i}((1+i)^n-1)(1+iT)\tag{2} \), \( FV=\dfrac{PMT}{i}((1+i)^n-1)\tag{2.1} \), \( FV=\dfrac{PMT}{i}((1+i)^n-1)(1+i)\tag{2,2} \), \( FV=PMT(1+g)^{n-1}+PMT(1+i)^1(1+g)^{n-2}+PMT(1+i)^2(1+g)^{n-3}+...+PMT(1+i)^{n-1}(1+g)^{n-n}\tag{3a} \), \( FV\dfrac{(1+i)}{(1+g)}=PMT(1+i)^1(1+g)^{n-2}+PMT(1+i)^2(1+g)^{n-3}+PMT(1+i)^3(1+g)^{n-4}+...+PMT(1+i)^{n}(1+g)^{n-n-1}\tag{3b} \), \( FV\dfrac{(1+i)}{(1+g)}-FV=PMT(1+i)^{n}(1+g)^{n-n-1}-PMT(1+g)^{n-1} \), \( FV(1+i)-FV(1+g)=PMT(1+i)^{n}-PMT(1+g)^{n} \), \( FV(1+i-1-g)=PMT((1+i)^{n}-(1+g)^{n}) \), \( FV=\dfrac{PMT}{(i-g)}((1+i)^{n}-(1+g)^{n}) \), \( FV=\dfrac{PMT}{(i-g)}((1+i)^{n}-(1+g)^{n})(1+iT)\tag{3} \), \( FV=PMT(1+i)^{n-1}+PMT(1+i)^1(1+i)^{n-2}+PMT(1+i)^2(1+i)^{n-3}+...+PMT(1+i)^{n-1}(1+i)^{n-n} \), \( FV=PMT(1+i)^{n-1}+PMT(1+i)^{n-1}+PMT(1+i)^{n-1}+...+PMT(1+i)^{n-1} \), \( FV=PV(1+i)^{n}+\dfrac{PMT}{i}((1+i)^n-1)(1+iT)\tag{5} \), \( FV=PV(1+i)^{n}+\dfrac{PMT}{i}((1+i)^n-1) \), \( FV=PV(1+i)^{n}+\dfrac{PMT}{i}((1+i)^n-1)(1+i) \), \( FV=PV(1+i)^{n}+\dfrac{PMT}{(i-g)}((1+i)^{n}-(1+g)^{n})(1+iT)\tag{6} \), \( FV=PV(1+i)^{n}+PMTn(1+i)^{n-1}(1+iT)\tag{7} \), \( FV=PV(1+\frac{r}{m})^{mt}+\dfrac{PMT}{\frac{r}{m}}((1+\frac{r}{m})^{mt}-1)(1+(\frac{r}{m})T)\tag{8} \), \( FV=PV(1+e^r-1)^{t}+\dfrac{PMT}{e^r-1}((1+e^r-1)^{t}-1)(1+(e^r-1)T) \), \( FV=PVe^{rt}+\dfrac{PMT}{e^r-1}(e^{rt}-1)(1+(e^r-1)T)\tag{9} \), \( FV=PVe^{rt}+\dfrac{PMT}{e^r-1}(e^{rt}-1)\tag{9.1} \), \( FV=PVe^{rt}+\dfrac{PMT}{e^r-1}(e^{rt}-1)e^r\tag{9.2} \), \( FV=PMT(1+g)^{n-1}+PMT(1+e^{r}-1)^1(1+g)^{n-2}+PMT(1+e^{r}-1)^2(1+g)^{n-3}+...+PMT(1+e^{r}-1)^{n-1}(1+g)^{n-n} \), \( FV=PMT(1+g)^{n-1}+PMTe^{r}(1+g)^{n-2}+PMTe^{2r}(1+g)^{n-3}+PMTe^{3r}(1+g)^{n-4}+...+PMT(e^{(n-1)r})(1+g)^{n-n}\tag{10a} \), \( \dfrac{FVe^{r}}{1+g}=PMTe^{r}(1+g)^{n-2}+PMTe^{2r}(1+g)^{n-3}+PMTe^{3r}(1+g)^{n-4}+PMTe^{4r}(1+g)^{n-5}+...+PMT(e^{nr})(1+g)^{n-n-1}\tag{10b} \), \( \dfrac{FVe^{r}}{1+g}-FV=PMT(e^{nr})(1+g)^{n-n-1}-PMT(1+g)^{n-1} \), \( FVe^{r}-FV(1+g)=PMTe^{nr}-PMT(1+g)^{n} \), \( FV=\dfrac{PMT}{e^{r}-(1+g)}(e^{nr}-(1+g)^{n}) \), \( FV=\dfrac{PMT}{e^{r}-(1+g)}(e^{nr}-(1+g)^{n})(1+(e^{r}-1)T)\tag{10} \), \( FV=PMTne^{r(n-1)}(1+(e^{r}-1)T)\tag{11} \), \( FV=15,000(1+0.015/12)^{12*10}+\dfrac{100}{0.015/12}((1+0.015/12)^{12*10}-1)(1+(0.015/12)*0) \), \( FV=15,000(1.00125)^{120}+\dfrac{100}{0.00125}((1.00125)^{120}-1) \), \( FV=17,425.88+92,938.03-80,000= $30,361.91 \), Compounding 12 times per period (monthly) m = 12. PMT(1+i)n-1, is the Use the calculator on the left to change this prediction. subtracting equation (3a) from (3b) most terms cancel and we are left with, with some algebraic manipulation, multiplying both sides by (1 + g) we have, cancelling the 1's on the left then dividing through by (i-g) we finally get, Similar to equation (2), to account for whether we have a growing annuity due or growing ordinary annuity we multiply by the factor (1 + iT), If g = i we can replace g with i and you'll notice that if we replace (1 + g) terms in equation (3a) with (1 + i) we get, since we now have n instances of

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