Present Value of a Growing Annuity Calculator
First Payment =
Interest Rate =
Growth Rate =
Periods/Year = 1
Present Value =
Calculates the present value of an annuity that grows over time. Also called growth annuity or increasing annuity.
- First Payment: payment made in the first period
- Interest/Year: annual interest rate expressed as a percentage
- Growth Rate: amount the payment increases each period expressed as a percentage
- Periods/Year: number of periods per year
- Periods: total number of periods for the annuity
- Present Value: present value of the payment stream
Source: [http://financeformulas.net/Present_Value_of_Growing_Annuity.html |financeformulas.net]
A $10,000 annuity that grows at 3% per year expires in 30 years. If the interest rate is 10% per year, what's the present value?
- First Payment: 10,000.00
- Growth Rate: 3%
- Interest/Year: 10%
- Periods/Year: 1
- Periods: 30
Select "=" on Present Value row. The present value of the growing annuity is $122,985.30.