Geometric Increasing Annuity Calculator
Actual Geometric Increasing Annuity Calculatorexplicitcashflowtimingperiods;unitpaymentbaseincludingdeclaredincreasing/decreasing/geometricweights,no embeddedmortality/contractpolicy. Actual independently applicable qualified life-table/model/rate assumptions,not a diagnosis,individual death prediction,published mortalitytable,contractquote or guaranteed financialresult.
Description
A geometrically increasing annuity changes each payment by a constant growth factor.
A geometrically increasing annuity changes each payment by a constant growth factor.1
This calculator assumes the first payment occurs after one period and discounts the finite stream at an independently supplied effective period interest rate.
When to use Geometric Increasing Annuity Calculator
Use this tool to apply the stated geometric increasing annuity calculator operation with an explicit input and unit basis.
How to use Geometric Increasing Annuity Calculator and how it works
- Establish the measurement basis and units described above.
- Enter actualEffectivePeriodInterest, actualPaymentCount, actualFirstPaymentAmount, actualPerPaymentGrowthRate and run the tool.
- Read result.presentValue using the output meanings below.
- If input is rejected, correct the stated type, range, ordering or alignment issue and rerun; review successful results under the declared convention.
| Input field | Meaning | Value type | Requirement |
|---|---|---|---|
| actualEffectivePeriodInterest | Effective interest fraction for the payment period; greater than −1. | number | required; finite; further conditions in the algorithm |
| actualPaymentCount | Number of payments; integer 0–10,000. | number | required; finite; integer from 0 to 10000; further conditions in the algorithm |
| actualFirstPaymentAmount | Payment amount or progression base as explicitly defined by this tool’s algorithm. | number | required; finite; nonnegative; further conditions in the algorithm |
| actualPerPaymentGrowthRate | Fractional growth per payment interval; greater than −1. | number | required; finite; further conditions in the algorithm |
Require interest i>−1, growth g>−1, nonnegative first payment P and integer count 0–10,000. Sum P(1+g)^k/(1+i)^(k+1); equal growth and discount rates need no separate singular formula.
PV = sum from k=0 to n−1 of P(1+g)^k/(1+i)^(k+1) Apply the declared units, ordering and branch conditions.
| Output field | Meaning | Value type |
|---|---|---|
| result | Object containing the declared output fields. | object |
| result.presentValue | Discounted payment-stream total in the input payment unit. | number |
{
"input": {
"actualEffectivePeriodInterest": 0,
"actualPaymentCount": 3,
"actualFirstPaymentAmount": 1,
"actualPerPaymentGrowthRate": 1
},
"output": {
"result": {
"presentValue": 7
}
}
}Limitations and assumptions
The output applies the declared operation to the values you supply. Establish the measurement basis, units, coefficients and any caller-selected rules before interpreting it. The tool does not independently collect or verify observations or decide whether a model or reference applies.
Supply explicit required fields with the documented types and dense aligned arrays. Unknown fields, wrong types and nonfinite numbers are rejected. Branch-specific constraints are explained above. A returned boolean, signed difference or tied result follows the stated convention; an input error instead means the required input contract was not satisfied. Very large inputs or outputs may be rejected by shared resource limits.
Alternative or Complementary methods
For a related operation, use Increasing Annuity Immediate Calculator. An increasing annuity-immediate pays one base amount after the first period, twice that amount after the second, and so on.
For a related operation, use Annuity Immediate Present Value Calculator. An annuity-immediate makes equal payments at the ends of successive periods.
References
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Geometric Increasing Annuity Calculator — tool.io
Similar or alternative tools
- Increasing Annuity Immediate Calculator
An increasing annuity-immediate pays one base amount after the first period, twice that amount after the second, and so on.
- Annuity Immediate Present Value Calculator
An annuity-immediate makes equal payments at the ends of successive periods.