FV Function

FV Function

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Class

Microsoft.VisualBasic.Financial

Syntax

 FV(   rate   ,   nper   ,   pmt   [,   pv   [,   due   ]]) 

rate (required; Double)

The interest rate per period

nper (required; Integer)

The number of payment periods in the annuity

pmt (required; Double)

The payment made in each period

pv (optional; Variant)

The present value of the loan or annuity

due (optional; Constant of the DueDate enumeration)

Specifies whether payments are due at the start or the end of the period. The value can be DueDate.BegOfPeriod or DueDate.EndOfPeriod (the default).

Return Value

A Double specifying the future value of an annuity

Description

Calculates the future value of an annuity (either an investment or loan) based on a regular number of payments of a fixed value and a static interest rate over the period of the annuity.

Rules at a Glance

• The time units used for the number of payment periods, the rate of interest, and the payment amount must be the same. In other words, if you state the payment period in months, you must also express the interest rate as a monthly rate and the amount paid per month.

• The rate per period is stated as a fraction of 100. For example, 10% is stated as .10. If you are calculating using monthly periods, you must also divide the rate per period by 12. Therefore, 10% per annum, for example, equates to a rate per period of .00833.

• The pv argument is most commonly used as the initial value of a loan. The default is 0.

• Payments made against a loan or added to the value of savings are expressed as negative numbers .

• The default value for the due argument is DueDate.EndOfPeriod .

See Also

IPmt Function, NPer Function, NPV Function, PPmt Function, PV Function, Rate Function