How to calculate the accumulated payments from an annuity at yr 10

[jmuirman]

To illustrate future payments of an annuity where the
first monthly payment is $2,500 compounded annually by 3% -- I know
how to calculate what the payment will look like say in the 10th year
which is $40,317, with this formula :

P = future value
C = initial deposit
r = interest rate (expressed as a fraction: eg. 0.06)
n = # of times per year interest is compounded
t = number of years invested
>
> But I can't figure out how to calculate the total amount paid in the
> 10th year which is $425,761. I got the answer by building a
> table and summing the yearly payments as follows - but, I want a formula that will return the answer of $425,761 with the variables I have.
>
> $2,500 3% $30,000 $30,000
> $2,575 $30,900 $60,900
> $2,652 $31,827 $125,509
> $2,732 $32,782 $159,274
> $2,814 $33,765 $194,052
> $2,898 $34,778 $229,874
> $2,985 $35,822 $266,770
> $3,075 $36,896 $304,773
> $3,167 $38,003 $343,916
> $3,262 $39,143 $384,234
> $3,360 $40,317 $425,761

Thanks,

John

[Morrigan]

Try this:

=SUMPRODUCT((30000*1.03^(ROW(A1:A12)-1)))

To illustrate future payments of an annuity where the
first monthly payment is $2,500 compounded annually by 3% -- I know
how to calculate what the payment will look like say in the 10th year
which is $40,317, with this formula :

P = future value
C = initial deposit
r = interest rate (expressed as a fraction: eg. 0.06)
n = # of times per year interest is compounded
t = number of years invested
>
> But I can't figure out how to calculate the total amount paid in the
> 10th year which is $425,761. I got the answer by building a
> table and summing the yearly payments as follows - but, I want a formula that will return the answer of $425,761 with the variables I have.
>
> $2,500 3% $30,000 $30,000
> $2,575 $30,900 $60,900
> $2,652 $31,827 $125,509
> $2,732 $32,782 $159,274
> $2,814 $33,765 $194,052
> $2,898 $34,778 $229,874
> $2,985 $35,822 $266,770
> $3,075 $36,896 $304,773
> $3,167 $38,003 $343,916
> $3,262 $39,143 $384,234
> $3,360 $40,317 $425,761

Thanks,

John