Section 2.2.8 – Future Value of Annuities & Compounding

In this episode of CRE Explained, Alex and Lily explore Section 2.2.8 and explain how to calculate the future value of annuities. Building on the concept of the time value of money, they discuss the difference between present value and future value and how compounding allows money to grow over time. Using an example of saving $100 per month at a 1% monthly interest rate, they demonstrate how regular payments accumulate interest and grow to a total future value of $1,268.25. This episode breaks down the concept of future value in a simple, practical way and highlights its importance in understanding savings, investments, and financial planning. The hosts also preview the next episode, which will explore how to calculate loan payments using known loan amounts, interest rates, and repayment periods. This episode was developed and produced by Nicole Jordan. Audio generated using Wondercraft AI. © 2026 CRE Explained Podcast Team. Based on Commercial Real Estate Analysis for Investment, Finance, and Development (4th Edition) by David M. Geltner, Norman G. Miller, Alex van de Minne, Piet Eichholtz, Thies Lindenthal, and Lily Shen. Developed through Clemson University Creative Inquiry (CI) 4980, under the supervision of Dr. Lily Shen. Reference Material: Commercial Real Estate Resources | CREBook.net