This chart enables you to observe and compare the future values of two constant-growth annuities differing only in their values for the percent increase in the size of successive payments.
Constant-Growth Annuity Definitions
- Initial Payment
- The initial payment for the annuity.
- Nominal annual interest rate
- The annual interest rate for your investment. This rate is divided by the number of compoundings per year to determine your periodic interest rate.
- Compounds per year
- Number of times per year interest is added to the balance. The more frequently this occurs, the sooner your accumulated interest will generate additional interest. For this calculator the number of compoundings per year is also the number of annuity payments.
- Payment increase
- The percentage increase of an annuity payment. This is the increase that happens after each payment.