Present value of a growing annuity - Fundas

In this video you will learn how to find out the present value of a growing annuity. You will also learn how to derive the formula for finding out the present value of a growing annuity.
#timevalueofmoney
#presentvalueofannuity
#ordinaryannuity
#annuitydue
#fundas
#futurevalueofannuity
#multiplemethods
#finance
#growingannuity

[@subhrajitchakraborty8170]

Thank you sir ❤

[@jakebold5326]

Thank you! Lovely proof!

[@capt.redbeard8361]

It always helps to see where the original formula comes from. So to find the FV of a growing annuity, one can:
1) calculate the RESULTANT RATE [(i-g)/(1+i)] - then use it to
2) calculate the PV of the growing annuity, and then
3) use the FV to calculate the PV using i.
This process makes it quite easy for use on the financial calculator.

[@eugene4112]

please can the 'i' value be different from the growth value(%)?

[@eugene4112]

please can the 'i' value be different from the growth value(%)?

[@ayashkantdeo8545]

Yes