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

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

Quizplus · Accepted Answer

The correct 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 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 $F V _ { O } = C \times \left[ \frac { ( 1 + n ) ^ { i } - 1 } { i } \right]$