what is the future value of an annuity 
the future value of an annuity is the value of recurring payments at a certain date in the future assuming a particular rate of return or discount rate the higher the discount rate the greater the annuity s future value fv of an annuity if the payments are made at the end of the period i e end of the month or year is calculated as fv pmt x 1 r n 1 r where fv future value of an annuity stream pmt dollar amount of each annuity payment r the discount interest rate and n number of periods in which payments will be made 