Periodic Payments
The Periodic Payments calculation is used to calculate the present and the future value of a series of periodic payments. As opposed to the annuity calculation, payments may vary by a percentage of the previous payment or by a fixed amount.
Note: The periodic change field accepts negative values. In the case of a negative fixed amount this can lead to negative payments. If this is detected, FinKit will display an error message and clear the periodic change field.
To see the amortization schedule, select the Show Details command in the Calculation menu.
To toggle between date and year/period view, click the first column header in the Details.
To change the start date, select the Start Date command in the Edit menu to open the Date Options dialog.
Input
| • nominal annual rate | |
| • compounding frequency | |
| • payment frequency | |
| • number of years or number of payments | |
| • amount of the first payment in the series | |
| • periodic change: | |
| •
no change • percentage (positive or negative) • amount (positive or negative) |
|
Results
| • present value |
| • future value |
| • total paid |
| • total interest |
Example
| • | What is the future value of quarterly payments of $100, $105, $110, ... for 10 years if interest is at 8 % compounded semiannually?
Answer: $11,100.93. |
Related topics
| Nominal annual rate |
| Compound interest |
| Annuity |