Microsoft Office Tutorials and References

In Depth Information

**Syntax**

Figure 13.6.

Figure 13.6.
You can estimate the future value of a regular savings plan.

You can estimate the future value of a regular savings plan.

Syntax

FV(rate,nper,pmt,pv,type)

The FV function returns the future value of an investment, based on periodic,

constant payments and a constant interest rate. This function takes the fol-

lowing arguments:

•
rate

rate
—
This is the interest rate per period.

•
nper

nper
—
This is the total number of payment periods in an annuity.

•
pmt

pmt
—
This is the payment made each period; it cannot change over the

life of the annuity. Typically, pmtcontains principal and interest

but no other fees or taxes. If pmtis omitted, you must include the pv

argument.

•
ppv
—
This is the present value, or the lump-sum amount that a series

of future payments is worth right now. If pvis omitted, it is assumed

to be 0, and you must include the pmtargument.

•
type

type
—
This is either 0 or 1 to indicate when payments are due. The de-

fault value of 0 assumes that payments are due at the end of the