# FV

The FV function returns the future value of an investment based on periodic constant payments and a constant interest rate. The future value is the closing amount that you will receive/pay at the end of the period.

### Syntax

FV(Rate, Nper, Pmt?, PV, Type?) - > Number 

### Arguments

<table><thead><tr><th width="139.33333333333331">Arguments 		</th><th width="204">Datatype</th><th>Description 														</th></tr></thead><tbody><tr><td>Rate</td><td>Number, Node reference</td><td>The interest rate per period</td></tr><tr><td>Nper</td><td>Number </td><td>The total number of periods</td></tr><tr><td>Pmt?</td><td>Number, Node reference</td><td>Equal payments paid out each period during the course of the investment term. This is an optional argument.</td></tr><tr><td>PV</td><td>Number, Node reference</td><td>The present value or initial investment. Cash outflows should be negative and cash inflows should be positive.</td></tr><tr><td>Type?</td><td>Number</td><td>Indicates when the payments are made. Type is 0 if the payments are made at the end of the period and 1 if payments are made at the start of the period.</td></tr></tbody></table>

### Example

Consider a series of $2000 payments made at the end of each year for 6 years for an investment. The objective is to calculate the future value at the end of 6 years where the interest rate is 5%.

<table><thead><tr><th width="126">Period</th><th>1</th><th>2</th><th>3</th><th>4</th><th>5</th><th>6</th></tr></thead><tbody><tr><td><mark style="color:purple;">Payment</mark></td><td>2000</td><td>2000</td><td>2000</td><td>2000</td><td>2000</td><td>2000</td></tr><tr><td><mark style="color:orange;">Interest Rate</mark></td><td>5%</td><td>5%</td><td>5%</td><td>5%</td><td>5%</td><td>5%</td></tr><tr><td><mark style="color:red;">Number of periods</mark></td><td>1</td><td>2</td><td>3</td><td>4</td><td>5</td><td>6</td></tr></tbody></table>

To calculate the future value, the following formula should be entered in the \[FV] node:

<mark style="color:blue;">**`FV`**</mark>**`(`**<mark style="color:orange;">**`[Interest Rate]`**</mark>**`,`**<mark style="color:red;">**`[Number of Periods]`**</mark>**`,`**<mark style="color:purple;">**`[Payment]`**</mark>**`,0,0)`**

### Result

<table data-header-hidden><thead><tr><th width="74">Column1</th><th width="111">Column2</th><th width="107">Column3</th><th width="110">Column4</th><th width="111">Column5</th><th width="114">Column6</th><th>Column7</th></tr></thead><tbody><tr><td>FV  </td><td>$2,000.00</td><td>$4,100.00</td><td>$6,305.00</td><td>$8,620.25</td><td>$11,051.26</td><td>$13,603.83</td></tr></tbody></table>

The value of $2000 keeps increasing at the end of each year by the interest rate of 5% giving a value of 13603.83 by the end of 6 years.