When the periodic payments are not equal in each period, the future value can be computed by using a future value of an annuity table.

Question

Quizplus · Accepted Answer

When the periodic payments vary, the future value cannot be directly computed using a future value of an annuity table, as these tables assume equal periodic payments. Instead, each payment must be individually calculated for its future value and then summed.

When the Periodic Payments Are Not Equal in Each Period