Manuals/calci/FV

FV (Rate,NoPaymentPeriods,Payment,PresentValue,Type)


Where

  • is the rate of interest per period,
  • is the total number of payment periods in an annuity,
  • is the payment value for each period,
  • is the present value, and
  • is value 0 or 1 indicating when the payments are due.
    • FV() calculates the future value of an investment depending on payment periods, payment value and interest rate.

Description

FV(Rate, NoPaymentPeriods, Payments, PresentValue, Type)

  • Argument   is optional. If   is omitted,   should be included.
  • Argument   is optional. If   is omitted, it is assumed to be zero(0) and argument   should be included.
  • Argument   can be 0 or 1. Below table indicates the selection of type value -
Type value Description
0 Payments due at the end of the period
1 Payments due at the beginning of the period
  • If   is other than 0 or 1, Calci displays #N/A error message.
  • For monthly payment, Rate should be divided by 12 (e.g. 10%/12) and PaymentPeroid should be multiplied by 12 (e.g. 4*12).

Examples

Consider the following example that shows the use of FV function:

2% 4.5%
11 5
-50 -45
-800 -1000
1 0
=FV(A1/12,A2,A3,A4,A5) : Calculates the future value for the values in the range A1 to A5. 
Annual interest rate is compounded monthly. Displays 1370.3201724868504 as a result. =FV(B1/12,B2,B3,B4,B5) : Calculates the future value for the values in the range B1 to B5.
Annual interest rate is compounded monthly. Displays 1245.5849933323898 as a result. =FV(0.04/12,10,-1000,1) : Annual interest rate is compounded monthly and PresentValue is omitted.
Displays 10150.307304505215 as a result.

Related Videos

FV

See Also

References