Answer:
future value interest factor
Explanation:
for e.g. you are going to make 10 annual payments starting exactly one year from now, each payment will equal $100,000, and the interest rate is 8% annual.
in order to determine the future value of this ordinary annuity, we can multiply the annual payment times the future value interest factor:
FV = $100,000 x 14.487 (FV annuity factor, 85, 10 periods) = $1,448,700
the formula that is used to calculate the future value interest factor is:
FVIF = [(1 + i)ⁿ - 1 ] / i
