# Accounting and finance for Banking Numerical on Future value of ordinary annuity

If you know how much you can invest per period for a certain time period, the future value (FV) of an ordinary annuity formula is useful for finding out how much you would have in the future. If you are making payments on a loan, the future value is useful in determining the total cost of the loan. If you know how much you plan to invest each year and the fixed rate of return your annuity guarantees – or, for loans, the amount of your payments and the given interest rate – you can easily determine the value of your account at any point in the future. GET 3000+ JAIIB PREVIOUS YEAR QUESTIONS, Study Notes, Videos
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