# fv - Future Value FV The future value of an investment or...

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Future Value – FV The future value of an investment or an annuity can be calculated using Excel's FV function. See the table below for a detailed list of the exercises and problems in the text that can be solved using this function. Syntax -FV(rate,number of periods,payment,present value,type) Rate – Interest rate Number of periods – term of investment Payment – periodic payments where individual amounts are the same Present Value – value of the investment today Type – when payment is to be made 0 – at end of period (assumed if left blank) 1 – at beginning of period General Example The following general example shows how the FV function can be used. Notice that the FV function appears in the formula bar. 1

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Using the FV Function in a Spreadsheet To calculate the future value of an investment or an annuity, create a spreadsheet by following Steps 1 to 7. Or, to use the FV function right away, open the FV worksheet in the Excel Functions Templates workbook. All fields have been formatted for you (currency, percentage, number of decimal displayed). Step 1 : In cell A1 enter FV Function. You will replace FV Function with your project name when you use the spreadsheet for a particular question or situation. Step 2 : In cell A3 enter Interest Rate per Compounding Period . In cell A4 enter Total Number of Compounding Periods . In cell A5 enter Payment or Deposit per Compounding Period . In cell A6 enter Present Value . In cell A7 enter Type (Ordinary or Due) . In cell A8 enter Answer . Step 3 : Leave cells B3 to B7 empty. You will place values in these cells later. Step 4 : Select cell B8, and then click the Paste Function button fx on the Toolbar. In the Function Category list, click on All . In the Function Name list, click on FV , then click OK . Step 5
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## This note was uploaded on 08/22/2009 for the course MATH 1101 taught by Professor Tonycirusolo during the Fall '05 term at Niagara College.

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fv - Future Value FV The future value of an investment or...

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