Financial
FV Function
Returns the future value of an annunity
by
Charley Kyd, MBA Microsoft Excel MVP, 20052014
The Father of Spreadsheet Dashboard Reports

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

rate Reqired. The
interest rate per period.

nper Required.
The total number of payment periods.

pmt Required. The
payment made each period. It contains principle and
interest, but no other fees or taxes.

pv Optional. The
present value, or the amount that the stream of future
payments is worth right now. If pv is omitted, it is
assumed to be 0.

type Optional.
The number 0 or 1 and indcates when payments are due.

If type is 0 or omitted,
payments are due at the end of the period, which is the
most common method.

If type is 1, payments are due
at the beginning of the period.
Applies To
Excel 2003 and above
Remarks
"An annuity is defined as a series of
payments of a fixed amount for a specified number of periods. If
payments occur at the end of each period, as they typically do,
then we have an ordinary annuity, or a
deferred annuity, as it is sometimes called. If
payments are made at the beginning of each period, then we have
an annuity due." Eugene F. Brigham,
"Financial Management Theory and Practice"
Make sure you are consistent with the time periods you use
for rate and nper. For example, if the rate is an annual rate,
you must convert it to an equivalent montly rate if the payments
are to be monthly.
Examples
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Other Help
