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First National Bank of Clarksdale, Your Hometown Bank, Bank of Oxford - a branch of First National Bank of Clarksdale

Future Value / Annuity

An ordinary annuity

Is a series of payments made at the end of each period in the series. Therefore, the formula for the future value of an ordinary annuity refers to the value on a specific future date of a series of periodic payments, where each payment is made at the end of a period

The future value of an annuity

Is the value of a group of recurring payments at a specified date in the future; these regularly recurring payments are known as an annuity. The future value of an annuity measures how much you would have in the future at a specified rate of return or discount rate.