FV, one of the financial functions which is calculates the future value of an investment based on a constant interest rate. You can use the FV function to get the future value of an investment assuming periodic, constant payments with a constant interest rate.
Syntax
=FV(rate, nper, pmt, [pv], [type])
Arguments
rate – The interest rate per period.
nper – The total number of payment periods.
pmt – The payment made each period. Must be entered as a negative number.
pv – [optional] The present value of future payments.
type – [optional] When payments are due
For example, suppose you invest $10,000 at an annual interest rate of 5% for 10 years and make monthly payments of $100. You can use the FV function to calculate the future value of your investment as follows:
=FV(5%/12, 10*12, -100, -10000)
The first argument 5%/12 converts the annual interest rate to a monthly rate. The second argument 10*12 converts the total number of years to the total number of months. The third argument -100 represents the monthly payment you make, which is negative because it represents an outgoing payment. The fourth argument -10000 is the initial investment, which is also negative because it represents an outgoing payment. The FV function will return the future value of your investment after 10 years