Microsoft Office Tutorials and References
In Depth Information
Looking into the Future
Here’s how to use the FV function:
1. Enter the following data in separate cells within the worksheet:
•Annualinterestrate
•Numberofpaymentperiods
•Periodicpaymentamount
•Initialinvestmentamount
You can add labels to adjacent cells to identify the values, if desired.
2. Position the cursor in the cell where you want the results to appear.
3. Enter =FV( to begin the function entry.
4. Click the cell where you entered the annual interest rate, or enter the
cell address.
5. Enter /12 to divide the annual interest rate to get the monthly
interest rate.
6. Enter a comma ( ,).
7. Click the cell where you entered the total number of payments, or
enter the cell address.
8. Enter a comma ( ,).
9. Click the cell where you entered the periodic payment amount, or
enter the cell address.
10. Enter a comma ( ,).
11. Click the cell where you entered the initial investment amount, or
enter the cell address.
12. Optionally, enter a comma ( ,), and then enter either 0 or 1 to identify
whether payments are made at the beginning of the period (0) or at
the end of the period (1).
13. Type a ), and press the Enter key.
Figure 6-1 shows how much an investment is worth after two years. The
investment is begun with $1,000, and an additional $50 is added each month.
The interest rate is 5 percent. The value of the investment at the end is
$2,364.24. The actual layout was $2,200 ($1,000 + [$50 × 24]). The account
has earned $164.24.
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