61 lines
2.7 KiB
Markdown
61 lines
2.7 KiB
Markdown
---
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layout: doc
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outline: deep
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lang: en-US
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---
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# FV
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## Overview
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FV (<u>F</u>uture <u>V</u>alue) is a function in the Financial category that can be used to predict the future value of an investment or asset based on its present value.
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FV can be used to calculate future value over a specified number of compounding periods. A fixed interest rate or yield is assumed over all periods, and a fixed payment or deposit can be applied at the start or end of every period.
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If your interest rate varies between periods, use the **FVSCHEDULE** function instead of FV.
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## Parameters
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**FV(rate, nper, pmt, pv, period_start)**
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- _rate_. The fixed percentage interest rate or yield per period.
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- _nper_. The number of compounding periods to be taken into account. While this will often be an integer, non-integer values are also accepted.
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- _pmt_ (optional). The fixed amount paid or deposited each compounding period (default 0).
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- _pv_ (optional). The present value or starting amount of the asset (default 0).
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- _period_start_ (optional). A logical value indicating whether the payment due dates are at the end (0) of the compounding periods or at the beginning (1) (default 0). FV treats any non-zero value as it would the value 1.
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### Additional notes
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- FV may generate #ERROR!, #VALUE! or #DIV/0! errors. For more details see our Error Types page (<span style="color:orange">link when page written</span>).
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- Make sure that the _rate_ argument specifies the interest rate or yield applicable to the compounding period, based on the value chosen for _nper_.
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- The _pmt_ and _pv_ arguments should be expressed in the same currency unit. FV returns a value in the same currency unit.
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- To ensure a worthwhile result, one of the _pmt_ and _pv_ arguments should be set to a non-zero value.
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- The setting of the _period_start_ argument only affects the calculation for non-zero values of the _pmt_ argument.
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## Details
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- If _rate_ = 0, FV solves the equation:
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$$
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FV = -pv - (pmt \times nper)
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$$
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- If _rate_ <> 0 and _period_start_ = 0, FV solves the equation:
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$$
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FV = -pv \times (1 + rate)^{nper} - \dfrac{pmt\times\big({(1+rate)^{nper}-1}\big)}{rate}
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$$
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- If _rate_ <> 0 and _period_start_ <> 0, FV solves the equation:
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$$
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FV = -pv \times (1 + rate)^{nper} - \dfrac{pmt\times\big({(1+rate)^{nper}-1}\big) \times(1+rate)}{rate}
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$$
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## Examples
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[See this example in IronCalc](https://app.ironcalc.com/?model=h30aj-o2HyK-1jUR8)
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## Links
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- For more information about the concept of "future value" in finance, visit Wikipedia's [Future value](https://en.wikipedia.org/wiki/Future_value) page.
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- Visit Microsoft Excel's [FV function](https://support.microsoft.com/en-gb/office/fv-function-2eef9f44-a084-4c61-bdd8-4fe4bb1b71b3) page.
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