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)
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. |
FV
uses the following formula to calculate future value:
future value = 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? Enter the following formula:
FV(400, 0.05, 25)
and you will get the number 19,090.84
(pounds).