FV
Returns the future value of an investment, where you make periodic, constant payments and the investment earns a constant interest rate.
Syntax
FV( rate, terms, payment [, present value, type] )
Argument | Required/ Optional | Description |
|---|
rate | Required | Numeric. Interest rate earned in each period. Expressed as a decimal number. Divide the percent rate by 100 to express it as a decimal number. Must be greater than or equal to 0. |
terms | Required | Numeric. Number of periods or payments. Must be greater than 0. |
payment | Required | Numeric. Payment amount due per period. Must be a negative number. |
present value | Optional | Numeric. Current value of the investment. If you omit this argument, FV uses 0. |
type | Optional | Integer. Timing of the payment. Enter 1 if payment is at the beginning of period. Enter 0 if payment is at the end of period. Default is 0. If you enter a value other than 0 or 1, Informatica Cloud treats the value as 1. |
Return Value
Numeric.
Example
You deposit $2,000 into an account that earns 9% annual interest compounded monthly (monthly interest of 9%/12, or 0.75%). You plan to deposit $250 at the beginning of every month for the next 12 months. The following expression returns $5,337.96 as the account balance at the end of 12 months:
FV(0.0075, 12, -250, -2000, TRUE)
Notes
To calculate interest rate earned in each period, divide the annual rate by the number of payments made in a year. The payment value and present value are negative because these are amounts that you pay.