FV
Name
Future Value
Description
Returns the future value of an investment based on a present value, periodic payments, and a specified interest rate.
Syntax
FV(Rate, Nper, Pmt, Pv, Type)
Remarks
Arguments are as follows:
| Argument | Description | |
|---|---|---|
| Rate | Interest rate expressed as percentage (per period) | |
| Nper | Total number of payment periods | |
| Pmt | Payment made each period | |
| Pv | (Optional) Present value If omitted, it is assumed to be zero and the calculation is based on the Pmt argument. |
|
| Type | (Optional) Indicates when payments are due If omitted, it is assumed that the payments are made at the end of the period. |
|
| Set Type equal to | If payments are due | |
| 0 | At the end of the period | |
| 1 | At the beginning of the period | |
| Note: You must specify a value for the Pv argument if you are going to specify a value for the Type argument. |
Use consistent units for specifying the Rate and Nper arguments. If you make monthly payments on a five-year loan at 8 percent annual interest, use 0.08/12 for the Rate argument and 5*12 for the Nper argument. If you make annual payments on the same loan, use 0.08 for Rate and 5 for Nper.
For all the arguments, money paid out such as deposits in an investment, is represented by negative numbers; money you receive, such as dividend checks, is represented by positive numbers.
See the PV function for the formula used to calculate financial values.
Data Type
Accepts numeric data for all arguments. Returns numeric data. For more information, see Data Type for Each Cell Type.
Example
FV(R1C1/12,48,R1C2,1000,0)
FV(0.005,60,-100,100,1)=6877