FUTURE WORTH OF ONE PER PERIOD


FUTURE WORTH OF ONE PER PERIOD is a factor used to calculate how much a series of equal sums deposited at the end of periodic compounding time intervals will be worth at the end of the total term.

In real estate, this factor is used to calculate the future value of a series of equal payments made at the end of each period2.

The formula for calculating the future worth of one per period is:

F=(1+i)^n

where:

F is the future worth of one per period

i is the interest rate per period

n is the number of periods

For example, if you deposit $100 at the end of each year for 5 years and the interest rate is 5%, the future worth of one per period would be:

F=(1+0.05)^5=1.27628

This means that the future value of each $100 deposit would be $127.63 at the end of the 5-year period3.

The future worth of one per period is an important concept in real estate because it can be used to calculate the future value of a series of equal payments made at the end of each period2. This can be useful when calculating the future value of mortgage payments or other types of real estate investments.


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