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FV()Category: Financial Syntax: FV ( payment ; interestRate ; periods ) Parameters: payment ”the nominal amount of the payment; interestRate ”the per-period interest rate; periods ”the number of periods in the duration of the investment. Description: Returns the future value of a periodic investment based on the payments and interest rate for the number of periods specified. Examples: FV ( 50 ; .10 ; 2 ) Returns 105 , indicating the amount of money you would have after making 2 periodic deposits of $50 into an investment that paid 10% per period. If the investment compounds monthly, divide the annual interestRate by 12 to express the periods as a number of months. To figure out the future value of monthly investments of $250, earning 8% interest, for 10 years , you would use the formula: FV ( 250 ; .08/12 ; 10 * 12) which returns 45736.51 Comments: The FV() function doesn't account for the present value of your investment, and it assumes that payments are made at the end of each period. |
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