**Luckily, yes, there IS a formula for finding the value of annuity investments!**

**Note: We are making our investments at the beginning of each period (month in most cases.) The typical annuity formula that appears in some Algebra books is for when the investment is made at the end of the period. This causes the first month's interest to be lost and isn't representative of how most people invest.**

**Let's invest $100 each month at 12%*. How much will we have in one year?**

** * If we invest each month, we need to assume that the account will be compounded monthly to use this formula.**

**Again, we'll use the "growth factor" of money.**

**investment amount = $100**

**growth factor = $1.01**

**interest per period = .01**

**number of periods = 12**

**Here's the formula:**

**With our numbers:**

**Hey, it works! We got the same amount that we got doing it the long month-by-month way.**