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

Arguments	Datatype	Description
Rate	Number, Node reference	The interest rate per period
Nper	Number	The total number of periods
Pmt?	Number, Node reference	Equal payments paid out each period during the course of the investment term. This is an optional argument.
PV	Number, Node reference	The present value or initial investment. Cash outflows should be negative and cash inflows should be positive.
Type?	Number	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.

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%.

Period	1	2	3	4	5	6
Payment	2000	2000	2000	2000	2000	2000
Interest Rate	5%	5%	5%	5%	5%	5%
Number of periods	1	2	3	4	5	6

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

FV([Interest Rate],[Number of Periods],[Payment],0,0)

Result

FV

$2,000.00

$4,100.00

$6,305.00

$8,620.25

$11,051.26

$13,603.83

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.