FV(Rate, PaymentPeriods, Payments, 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, PaymentPeriods, 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 10185.178946116719 as a result.