FV
See Also
Returns the future value of an investment based on periodic, constant
payments and a constant interest rate.
Syntax
FV(rate,nper,pmt,pv,type)
For a more complete description of the arguments in FV and for more
information on annuity functions, see PV.
Rate is the interest rate per period.
Nper is the total number of payment periods in an annuity.
Pmt is the payment made each period; it cannot change over the life of the
annuity. Typically, pmt contains principal and interest but no other fees or
taxes. If pmt is omitted, you must include the pv argument.
Pv is the present value, or the lump-sum amount that a series of future
payments is worth right now. If pv is omitted, it is assumed to be 0 (zero),
and you must include the pmt argument.
Type is the number 0 or 1 and indicates when payments are due. If type is
omitted, it is assumed to be 0.
Set type equal to If payments are due
0 At the end of the period
1 At the beginning of the period
Remarks
a.. Make sure that you are consistent about the units you use for
specifying rate and nper. If you make monthly payments on a four-year loan
at 12 percent annual interest, use 12%/12 for rate and 4*12 for nper. If you
make annual payments on the same loan, use 12% for rate and 4 for nper.
b.. For all the arguments, cash you pay out, such as deposits to savings,
is represented by negative numbers; cash you receive, such as dividend
checks, is represented by positive numbers.
Examples
FV(0.5%, 10, -200, -500, 1) equals $2581.40
FV(1%, 12, -1000) equals $12,682.50
FV(11%/12, 35, -2000, , 1) equals $82,846.25
Suppose you want to save money for a special project occurring a year from
now. You deposit $1,000 into a savings account that earns 6 percent annual
interest compounded monthly (monthly interest of 6%/12, or 0.5%). You plan
to deposit $100 at the beginning of every month for the next 12 months. How
much money will be in the account at the end of 12 months?
FV(0.5%, 12, -100, -1000, 1) equals $2301.40
