Future Value of an Ordinary Annuity | with Compounding

In this lesson, we explain what the Future Value of an ordinary annuity is and the formula to calculate the future value (FV) of an ordinary annuity. We also explain and go through examples of how to calculate the future value (FV) of an ordinary annuity when there is compounding and when the interest rate compounding is different from the payment compounding. We go through various examples with compounding and how to use the nominal interest rate and the effective interest rate when calculating the future value of an ordinary annuity.
Future Value of an Ordinary Annuity | Formula | Lesson 1: • Future Value of an Ord...
Nominal Interest Rate | Explained with Calculation Examples | • Nominal Interest Rate ...
Effective Interest Rate | Explained with Calculation Examples: • Effective Interest Rat...
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[@doctorpebble3892]

I don't know if you still check these comments, but you were a big help today. I've had an issue with identifying what types of formulas to use in these types of problems in my class today. After viewing several of your videos, you made the concept perfectly clear in my head. As an Accounting Major, this channel will be especially useful. Keep up the great work!

[@freefiretournament9629]

good help for me.. lot of thanks

[@annastaziaemmanuel9689]

is it 12 as an interest for example 3 in nominal interest or 0.614 as u said ?

[@momeenamahlawe6315]

Thanks your videos help. Please share how you'd calculate volatility between two assets using the HPb11+ calculator. Also example of expected return of portfolio, were you punch numbers once

[@mpendulonyamade1695]

Sir Im struggling to get this R19659.23 using my calculator on example 3. please assist

[@yourgirlstyebrooke]

Please check the 3rd example..I don’t understand why you used 12 in the place of interest when solving your nominal interest... I thought u said interest was 0.614???

[@Counttuts]

The 0.614 is the effective interest rate. After getting the effective interest rate, we needed to now calculate the nominal interest rate compounded monthly in order to match the payment compounding. If you are still confused, check out our lesson on the nominal interest rate here: ruclips.net/video/mNfdXLGL54w/видео.html