The formula for the future value of an ordinary annuity of any amount is: $$F V _ { o } = C \times \left[ \frac { ( 1 + n ) ^ { i } - 1 } { i } \right]$$

Question

Quizplus · Accepted Answer

The formula for the future value of an ordinary annuity is: $$FV_o = C \times \left[ \frac{(1 + i)^n - 1}{i} \right]$$, where $C$ is the cash flow per period, $i$ is the interest rate per period, and $n$ is the number of periods. The formula provided incorrectly swaps $n$ and $i$.

The Formula for the Future Value of an Ordinary Annuity FVo=C×[(1+n)i−1i]F V _ { o } = C \times \left[ \frac { ( 1 + n ) ^ { i } - 1 } { i } \right]FVo​=C×[i(1+n)i−1​]

The Formula for the Future Value of an Ordinary Annuity $F V _ { o } = C \times \left[ \frac { ( 1 + n ) ^ { i } - 1 } { i } \right]$