Problem

You need to compute the future value of a series of payments, considering the time value of money.

Solution

Use the `FV` function.

Discussion

`FV` performs essentially the reverse of `PV,` which was discussed in the previous recipe. Consider this example: what is the future value of $500 monthly payments over five years at an annual 8% interest rate? You can use `FV` to find an answer. The syntax for `FV` is `=FV(`*rate*`,` *nper*`,` *pmt*`,` *pv*`,` *type*`)`, where ` rate` is the interest rate per period,

For our example, the cell formula `=FV(0.08/12,5*12,-500,0,0)` returns a future value of $36,738.43. The interest rate passed in as the first argument in the call to `FV` is 0`.08/12` to compute the monthly rate, since payments are made every month. Further, the number of payments over the five-year period was entered as `5*12`. Also, the $500 monthly payment was entered as a negative value, indicating it's an out payment.

See Also

Take a look at the other recipes in this chapter to learn about other calculations of the time value of money.

Using Excel

- Introduction
- Navigating the Interface
- Entering Data
- Setting Cell Data Types
- Selecting More Than a Single Cell
- Entering Formulas
- Exploring the R1C1 Cell Reference Style
- Referring to More Than a Single Cell
- Understanding Operator Precedence
- Using Exponents in Formulas
- Exploring Functions
- Formatting Your Spreadsheets
- Defining Custom Format Styles
- Leveraging Copy, Cut, Paste, and Paste Special
- Using Cell Names (Like Programming Variables)
- Validating Data
- Taking Advantage of Macros
- Adding Comments and Equation Notes
- Getting Help

Getting Acquainted with Visual Basic for Applications

- Introduction
- Navigating the VBA Editor
- Writing Functions and Subroutines
- Working with Data Types
- Defining Variables
- Defining Constants
- Using Arrays
- Commenting Code
- Spanning Long Statements over Multiple Lines
- Using Conditional Statements
- Using Loops
- Debugging VBA Code
- Exploring VBAs Built-in Functions
- Exploring Excel Objects
- Creating Your Own Objects in VBA
- VBA Help

Collecting and Cleaning Up Data

- Introduction
- Importing Data from Text Files
- Importing Data from Delimited Text Files
- Importing Data Using Drag-and-Drop
- Importing Data from Access Databases
- Importing Data from Web Pages
- Parsing Data
- Removing Weird Characters from Imported Text
- Converting Units
- Sorting Data
- Filtering Data
- Looking Up Values in Tables
- Retrieving Data from XML Files

Charting

- Introduction
- Creating Simple Charts
- Exploring Chart Styles
- Formatting Charts
- Customizing Chart Axes
- Setting Log or Semilog Scales
- Using Multiple Axes
- Changing the Type of an Existing Chart
- Combining Chart Types
- Building 3D Surface Plots
- Preparing Contour Plots
- Annotating Charts
- Saving Custom Chart Types
- Copying Charts to Word
- Recipe 4-14. Displaying Error Bars

Statistical Analysis

- Introduction
- Computing Summary Statistics
- Plotting Frequency Distributions
- Calculating Confidence Intervals
- Correlating Data
- Ranking and Percentiles
- Performing Statistical Tests
- Conducting ANOVA
- Generating Random Numbers
- Sampling Data

Time Series Analysis

- Introduction
- Plotting Time Series Data
- Adding Trendlines
- Computing Moving Averages
- Smoothing Data Using Weighted Averages
- Centering Data
- Detrending a Time Series
- Estimating Seasonal Indices
- Deseasonalization of a Time Series
- Forecasting
- Applying Discrete Fourier Transforms

Mathematical Functions

- Introduction
- Using Summation Functions
- Delving into Division
- Mastering Multiplication
- Exploring Exponential and Logarithmic Functions
- Using Trigonometry Functions
- Seeing Signs
- Getting to the Root of Things
- Rounding and Truncating Numbers
- Converting Between Number Systems
- Manipulating Matrices
- Building Support for Vectors
- Using Spreadsheet Functions in VBA Code
- Dealing with Complex Numbers

Curve Fitting and Regression

- Introduction
- Performing Linear Curve Fitting Using Excel Charts
- Constructing Your Own Linear Fit Using Spreadsheet Functions
- Using a Single Spreadsheet Function for Linear Curve Fitting
- Performing Multiple Linear Regression
- Generating Nonlinear Curve Fits Using Excel Charts
- Fitting Nonlinear Curves Using Solver
- Assessing Goodness of Fit
- Computing Confidence Intervals

Solving Equations

- Introduction
- Finding Roots Graphically
- Solving Nonlinear Equations Iteratively
- Automating Tedious Problems with VBA
- Solving Linear Systems
- Tackling Nonlinear Systems of Equations
- Using Classical Methods for Solving Equations

Numerical Integration and Differentiation

- Introduction
- Integrating a Definite Integral
- Implementing the Trapezoidal Rule in VBA
- Computing the Center of an Area Using Numerical Integration
- Calculating the Second Moment of an Area
- Dealing with Double Integrals
- Numerical Differentiation

Solving Ordinary Differential Equations

- Introduction
- Solving First-Order Initial Value Problems
- Applying the Runge-Kutta Method to Second-Order Initial Value Problems
- Tackling Coupled Equations
- Shooting Boundary Value Problems

Solving Partial Differential Equations

- Introduction
- Leveraging Excel to Directly Solve Finite Difference Equations
- Recruiting Solver to Iteratively Solve Finite Difference Equations
- Solving Initial Value Problems
- Using Excel to Help Solve Problems Formulated Using the Finite Element Method

Performing Optimization Analyses in Excel

- Introduction
- Using Excel for Traditional Linear Programming
- Exploring Resource Allocation Optimization Problems
- Getting More Realistic Results with Integer Constraints
- Tackling Troublesome Problems
- Optimizing Engineering Design Problems
- Understanding Solver Reports
- Programming a Genetic Algorithm for Optimization

Introduction to Financial Calculations

- Introduction
- Computing Present Value
- Calculating Future Value
- Figuring Out Required Rate of Return
- Doubling Your Money
- Determining Monthly Payments
- Considering Cash Flow Alternatives
- Achieving a Certain Future Value
- Assessing Net Present Worth
- Estimating Rate of Return
- Solving Inverse Problems
- Figuring a Break-Even Point

Index

Excel Scientific and Engineering Cookbook (Cookbooks (OReilly))

ISBN: 0596008791

EAN: 2147483647

EAN: 2147483647

Year: N/A

Pages: 206

Pages: 206

Authors: David M Bourg

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