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
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