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. 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.

• 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.

Example 1

Note  The annual interest rate is divided by 12 because it is compounded monthly.

Example 2

Note  The annual interest rate is divided by 12 because it is compounded monthly.