greenmatthews
New member
I'm trying to determine the future value of an account, I know that if I am trying to determine FV with compounding the formula is FutureValue=PrincipalValue( 1 + (InterestRate / CompoundingFrequency))^(NumberOfPayments x CompoundingFrequency) also written as FV=PV(1+r/m)^(n*m).
How would a do a similar calculation only with a constant number being added each period?
For example, if I have a Present value of 0 and want to invest $3,000 each year for the next 35 years with 8% annual compounding, how would I calculate the future value? Where do I add in the $3,000 into the equation to determine the value to be compounded?
Thanks in advance for the help. You don't have to solve the problem I've provided, just a formula or explanation would be great.
How would a do a similar calculation only with a constant number being added each period?
For example, if I have a Present value of 0 and want to invest $3,000 each year for the next 35 years with 8% annual compounding, how would I calculate the future value? Where do I add in the $3,000 into the equation to determine the value to be compounded?
Thanks in advance for the help. You don't have to solve the problem I've provided, just a formula or explanation would be great.