FV()
Category: Financial
|
Syntax: FV ( payment; interestRate; periods ) |
Parameters:
paymentThe nominal amount of the payment.
interestRateThe per-period interest rate.
periodsThe number of periods in the duration of the investment.
Data type returned: Number
Description:
Returns the future value of a periodic investment based on the payments and interest rate for the number of periods specified.
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.
Examples:
|
Function |
Results |
|---|---|
|
FV ( 50; .10; 2 ) |
Returns 105, indicating the amount of money you would have after making two 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. |
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