FINEDGE LEARNING

Interactive Concept: Annuity Interest Rate

An interactive annuity model for students to explore how present value, future value, payments, and timing determine the interest rate through annual compounding and payment timing changes.

Prototype
Interest Rate
10.0%
Scenario
$10,000 with $500 payments, ordinary annuity (end mode), target future value $67,275.00, solved rate 10.0% for 20 years
Blue line = future value path for the selected mode Colored dots = payment markers for the selected mode
Dollars
Years
Future value path Payment $500, Ordinary annuity (end mode)

Rate Comparison

Compare the interest rate required for ordinary annuity versus annuity due using the same inputs.

Compounding Schedule

Table order reflects payment timing.

The schedule shows each compounding period with the payment timing built into the row so the difference between ordinary annuity and annuity due is easy to follow.