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The Future Value of an Annuity Table Provides a Short-Cut

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The future value of an annuity table provides a short-cut for calculating the future value of a steady stream of payments, denoted as A. The same value can be calculated directly from the following equation:
The future value of an annuity table provides a short-cut for calculating the future value of a steady stream of payments, denoted as A. The same value can be calculated directly from the following equation:


Definitions:

Return on Assets

This measures how efficiently a company's management is using its total assets to generate profits.

Asset Turnover

A financial ratio that measures the efficiency of a company's use of its assets to generate sales or revenue.

Average Total Assets

This metric calculates the average value of all assets owned by a company over a specific period, usually used in financial analysis to gauge productivity.

Aging Method

An accounting technique used to estimate the amount of bad debts (uncollectible accounts) by categorizing accounts receivable according to their age (how long they have been outstanding).

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