This calculator enables you to observe and compare the effects of changes in the variables for an annuity and calculate future value and present value of an annuity. You can observe the effect of a single variable by giving both annuities the same values for the other two variables.
Influence of Annuity Variables Calculator
Influence of Annuity Variables Calculator Definitions
- Payment amount
- The payment for the annuity.
- Number of payments
- Total number of payments made for this annuity.
- Nominal annual interest rate
- The annual interest rate for your annuity. This rate is divided by the number of compoundings per year to determine your periodic interest rate.
- Compounds per year
- Interest on an investment's interest, plus previous interest. The more frequently this occurs, the sooner your accumulated interest will generate additional interest. You should check with your financial institution to find out how often interest is being compounded on your particular investment.