The FV function

[Jolanta]

This is a silly question but I can't get it to work

I put 1000 dollars in the bank (one time installment). I get 4% annual
interest. And I keep the money in the bank for 17 years.

On paper the answer is 1000 x 4% = 40 x 17 = 680 dollar + the initial
amount of 1000 = 1680

How can I put these numbers into the FV Function of Excel

Rate ?
Nper ?
PMT ?
PV ?
Type 1

Thanks a lot for your help

 

[Teethless mama]

=A1*4%*17+A1

 

[Jolanta]

Thanks!

Can't the FV function be used in this case or perhaps another of the
many excel functions?

Bye

 

[Niek Otten]

<On paper the answer is 1000 x 4% = 40 x 17 = 680 dollar + the initial amount of 1000 = 1680>

NO, No, No!!!
You're ignoring compound interest

--
Kind regards,

Niek Otten
Microsoft MVP - Excel

| This is a silly question but I can't get it to work
|
| I put 1000 dollars in the bank (one time installment). I get 4% annual
| interest. And I keep the money in the bank for 17 years.
|
| On paper the answer is 1000 x 4% = 40 x 17 = 680 dollar + the initial
| amount of 1000 = 1680
|
| How can I put these numbers into the FV Function of Excel
|
| Rate ?
| Nper ?
| PMT ?
| PV ?
| Type 1
|
| Thanks a lot for your help

 

[Roger Govier]

Hi

Try
=FV(4%,17,,-1000)
Result
1947.90

 

[Jolanta]

Dear Roger and David

Are you telling me that the correct answer is 1 947,90 and not 1
680,00 )

 

[Peo Sjoblom]

Yes, they are right, you and TM are wrong

Of course your total value was 1680.00

But the compounded interest is 947.90

Example here


http://nwexcelsolutions.com/financi..._compounded_over_10_years_would_be_$11,589.25


--


Regards,


Peo Sjoblom

 

[stew]

at the end of the first year you do not have 1000 you have 1040
Second Year you have 1081.60 and so on