FV
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.
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).
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
- 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.
- 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