# Explain how future value of an annuity interest factors can be used to solve a sinking fund

## Question:

Annuity

An annuity is a series of equal payment made at equal intervals during a period of time. In other words annuity is a contract between insurer and insurance company in which insurer make a lump-sum payment or a series of payment and, in return,... Future Value

Future value (FV) is the value of a current asset at a future date based on an assumed rate of growth. The future value (FV) is important to investors and financial planners as they use it to estimate how much an investment made today will be worth...

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**Related Book For**

## Contemporary Financial Management

**ISBN:** 9780324289114

10th Edition

**Authors:** James R Mcguigan, R Charles Moyer, William J Kretlow