Returns the future value of an investment based on a number of equal payments, each earning interest at a periodic rate, over a specified term which is the number of periods.
Syntax:
FV( payment:Number, interest:Number, term:Number )
where:
payment | is the amount of each individual payment; |
interest | is the interest rate, expressed as a decimal fraction; |
term | is the number of periods during which payments will be made. |
Formula:
FV = payment × ( (1 + interest)term − 1 ) ∕ interest
Example:
If you deposit £400 into an account each year, earning interest at 5% per annum, what is the value of the account after 25 years?
The formula
FV(400, 0.05, 25)
returns the future value 19,090.84
(pounds).