Definition:Compound Interest Table/Annuity Amount

Definition

Let a principal $P$ be invested every conversion period, and accumulated under compound interest with an interest rate $r$ over a number of conversion periods $n$.

The annuity amount of $P$ is defined as:

$P \dfrac {\paren {1 + r}^n - 1} r$

Symbol

The symbol for an annuity amount accumulated over $n$ conversion periods is $S_n$.

Also known as

An annuity amount is also known as an accumulated value.

Also see

• Results about annuity amounts can be found here.

Sources

• 1998: David Nelson: The Penguin Dictionary of Mathematics (2nd ed.) ... (previous) ... (next): interest
• 2008: David Nelson: The Penguin Dictionary of Mathematics (4th ed.) ... (previous) ... (next): interest