FV Function

Description

The function FV returns a value specifying the future value of an annuity based on periodic, fixed payments and a fixed interest rate.

Syntax

FV (Rate, NPer, Pmt)

FV (Rate, NPer, Pmt, PV)

FV (Rate, NPer, Pmt, PV, Due)

Required Parameters

Rate

The interest rate per period. For example, if you get a car loan at an annual percentage rate (APR) of 10 percent and make monthly payments, the rate per period is 0.1/12, or 0.0083.

NPer

The total number of payment periods in the annuity. For example, if you make monthly payments on a four-year car loan, your loan has a total of 4 x 12 (or 48) payment periods.

Pmt

The payment to be made each period. Payments usually contain principal and interest that doesn't change over the life of the annuity.

Optionale Parameter

PV

The present value (or lump sum) of a series of future payments. For example, when you borrow money to buy a car, the loan amount is the present value to the lender of the monthly car payments you will make. If omitted, 0 is assumed.

 

Due

This argument must be either \(0\) if payments are due at the end of the payment period, or \(1\) if payments are due at the beginning of the period. If omitted, \(0\) is assumed.