Present value of growing annuity

Present value of growing annuity is the calculation of present value of a series of cash flows that grow at a constant rate for each period / year.

The present value of a growing annuity is calculated using the following formula :

PVGA = [ P / ( r – g) ] * [ 1 –  ( ( 1 + g ) / ( 1 + r ) ) n ]

where

PVGA = Present value of growing annuity    ;   P = First year payment    ; g = growth rate ;  r = Discount rate / rate of interest  ; n = Number of years ;

In the calculator below insert the values of First year payment, growth rate, Discount rate and Number of years to arrive at the Present value of growing Annuity.

Leave a Reply

Your email address will not be published.

Privacy PolicyPrivacy Policy

1. Terms By accessing the website at http://www.financepointers.com, you are agreeing to be bound by these terms of service, all applicable laws and regulations, and agree that you are responsible for