Topic 2 - Spreadsheets

Study Unit 4 / 5: Exam – FV

EXPLAIN THE FV FUNCTION IN EXCEL.

=FV(rate,Nper,Pmt,Pv,Type)

=FV(rate, nper, pmt, pv, [pv=0][type=0])

RETURNS THE FUTURE VALUE OF AN INVESTMENT, BASED ON CONSTANT PAYMENTS AND A CONSTANT INTEREST RATE

rate = exchange rate per period of the loan (per month)

Nper = number of payment periods (months)

Pmt = the payment made each period

Pv = the starting amount (0 if omitted)

Type = optional - when payments are due

0/omitted = end of period,

1 = start of period

 

EXAMPLE:

YOU WANT TO SAVE R500 AT THE END OF EACH MONTH FOR 5 YEARS

AND THE BANK IS PREPARED TO GIVE YOU A CONSTANT INTEREST RATE OF 14% PER ANNUM

Study Unit 4 / 5: Exam – PMT (Prev Lesson)
(Next Lesson) Study Unit 4 / 5: Exam – IF
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