FV

Description

Calculates the future value of a recurring annuity investment at a set point in the future. It is based on an interest rate, a number of recurring payments, the amount of individual payments, the present value and either ordinary annuity or annuity due (type) indicating whether payments are due at the beginning or the end of period.

Use this when you need to calculate how much a series of recurring payments will be worth at a future date given a fixed interest rate.

Syntax

FV('Rate', 'Nper', 'Pmt' [, 'Pv' , ["Type"]])

Parameters

• Rate: The interest rate.

• Nper: Number of periods: the number of payments to be made.

• Pmt: Payment per period: the amount per period to be paid. Payments/costs should (but are not required to) be entered as a negative number e.g. -500.

• Pv (optional): Present value: the current value of the annuity. Defaults to 0.

• Type (optional): "1" = payment at beginning of period (Annuity Due), "0" = payment at end of period (Ordinary Annuity). Defaults to 0.

Notes

• Argument 'Pmt' is the leading input node.

  • A leading input node is a function argument, for which we assume the levels to be correct. All other input nodes need to have the same dimensionality.

• Each input node can be a single number.

• Providing all inputs with the same dimensionality results in a noticeable performance improvement.

Limitations

• All other inputs must not contain levels that are not in the leading input node 'Pmt'.

• All level values that are in the leading input node 'Pmt', must be in all the other input nodes.