24.5.3 - Future Value of an Annuity (FVA)
Enroll to start learning
You’ve not yet enrolled in this course. Please enroll for free to listen to audio lessons, classroom podcasts and take practice test.
Practice Questions
Test your understanding with targeted questions
What does PMT stand for in relation to FVA?
💡 Hint: Think about what regular contributions to savings are called.
What is the general purpose of using the FVA formula?
💡 Hint: Consider why we care about future money that we invest regularly.
4 more questions available
Interactive Quizzes
Quick quizzes to reinforce your learning
What does FVA stand for?
💡 Hint: Focus on the terms used: what describes future values related to annuities?
True or False: FVA applies to a single payment only.
💡 Hint: Think about how many payments you might make over time.
2 more questions available
Challenge Problems
Push your limits with advanced challenges
A company plans to deposit ₹10,000 annually in a savings account with a 7% annual interest rate. How much will the total amount be after 15 years?
💡 Hint: Break down each component and ensure you adjust for the total number of years.
Mary decides to contribute ₹1,500 every month towards her child's college fund at an expected annual return of 5%. Determine how much she'll accumulate in 12 years.
💡 Hint: Make sure to convert the annual rate to a monthly rate for accurate calculation.
Get performance evaluation
Reference links
Supplementary resources to enhance your learning experience.