Thinking of investing money somewhere? Calculate using Microsoft Excel how much your investment will be worth after some times.
To do this calculation you have to fill three must fill values and two optional values.
- Annual interest rate
- Number of payment periods
- Periodic payment amount
- Initial investment amount
- Payment mode
Here we are going to use the FV function.
Before that take a look how the FV function works.
It has 5 arguments, 3 of them are mandatory and 2 are optional.
- rate The annual interest rate.
- nper The total number of payment periods for your investment.
- pmt The payment made on each period
- pv(optional) The initial amount with which the investment starts. If left out 0 is assumed.
- Type(optional) Whether the payments are made at the beginning of the period or at the end of the period. Either a 0 or a 1 can be entered. 0 tells the function that payments occur at the end of the period and 1 tells the function that payments occur at the start of the period. If left out, 0 is assumed.
Now make a worksheet like the image below,
and put this code in the cell B5
=FV(B1,B2,B3,B4)
This actually is a really great idea and great article but I think people have to remember it is an approximate value. Really interesting though
yes you are right
anyway keep visiting.
thank you!
no one can predict future value for anything, but it can give you an estimate to make your decision easier.
and more is that this function works with fixed interest rate not on floating.