FV (Future Value)
, one of the financial functions, calculates the future value of an investment based on a constant interest rate. You can use FV with either periodic, constant payments, or a single lump sum payment.
Example
FV = - [ (PV * ( (1 + Rate) ^ Nper ) ) + ( PMT * (1 + Rate * type) ) * ( ( (1+Rate) ^ Nper ) - 1 ) / Rate ) ]
FV = Future Value
PV = Present Value
Rate = Interest Rate per period
Nper = Number of periods
type = Payment At (Beginning = 1 , End = 0)
pmt = Payment Value
Example
Present value 1,000,000 Bath, Annual interest rate 8% , At the beginning of the period, Payment made each period 5,000 Bath, Number of period 10 years
Solution
FV = - [ ( 1,000,000 * ( 1 + 8% ) ^ 10 ) + ( 5,000 * (1 + 8% * 1) ) * ( (1+8%) ^ 10 ) - 1 ) / 8% ) ]
PMT = - 94,022.06
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