This function returns the future value of an investment based on periodic, constant payments and a simple annual interest.
Syntax:
FV(rate, nper, pmt [ ,pv [ , type ] ])
Return data type: numeric. The result has a default number format of money. .
Arguments:
| Argument | Description |
|---|---|
| rate | The interest rate per period. |
| nper | The total number of payment periods in an annuity. |
|
pmt |
The payment made each period. It cannot change over the life of the annuity. A payment is stated as a negative number, for example, -20. |
|
pv |
The present value, or 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 |
Should be 0 if payments are due at the end of the period and 1 if payments are due at the beginning of the period. If type is omitted, it is assumed to be 0. |
Examples and results:
| Example | Result |
|---|---|
|
You are paying a new household appliance by 36 monthly installments of $20. The interest rate is 6% per annum. The bill comes at the end of every month. What is the total invested, when the last bill has been paid? FV(0.005,36,-20) |
Returns $786.72 |
