FV (rate,nper,pmt)

Description:

This function returns the future value of an investment based on periodic, constant payments and a constant interest rate.

Syntax : FV (Rate, Nper, Pmt) ;
              FV (Rate, Nper, Pmt, Pv) ; or
              FV (Rate, Nper, Pmt, Pv, Type)

• Rate : is the interest rate per period.
• Nper : is the total number of payment periods in an annuity.
• Pmt : is the payment made each period; it cannot change over the life of the annuity. Typically, pmt contains principal and interest but no other fees or taxes. If pmt is omitted, you must include the pv argument.
• PV : is the present value, or the lump-sum amount that a series of future payments is worth right now. If pv is omitted, it is assumed to be 0 (zero), and you must include the pmt argument.
• Type : is the number 0 or 1 and indicates when payments are due. If type is omitted, it is assumed to be 0.

Remarks

• Make sure that you are consistent about the units you use for specifying rate and nper. If you make monthly payments on a four-year loan at 12 percent annual interest, use 12%/12 for rate and 4*12 for nper. If you make annual payments on the same loan, use 12% for rate and 4 for nper.
• For all the arguments, cash you pay out, such as deposits to savings, is repr000esented by negative numbers; cash you receive, such as dividend checks, is represented by positive numbers.

Example

The FV function can be used in any database where you have stored values pertaining to rate of the investment, the payment period, the payment value , the present value of the investment and the type of the investment which indicates when the payment is due. The function reads these options and calculates the value for FV depending upon the parameters that are supplied. The function can be built with either the compulsory parameters, or then the 2 optional parameters can be added one by one or both together.

This function returns the calculated numeric value as it's result.

 

Example1 : FV (rate, nper, pmt)

=FV (9, 3, -150)	-returns the value for FV (16650)
=FV (10, 6, -50)	-returns the value for FV (8857800)
=FV (9, 4, -900)	-returns the value for FV (999900)

 

Let us take the example of a database in PowerOLAP called "Effective Finance" where we have values for rate, the number of payment cycles and the payment value. We shall use this example in this case to find the value for FV by calculating the parameters supplied to the function which are the reference for the rate of the investment, the number of payment cycles in an annuity and the payment amount due.



The formula above writes values into the "InvestmentPlanningModel" cube to the "FinancialDataFunctions" dimension into the member named "FV" by creating the appropriate value for this member, based upon the parameters that are given as input to this function, namely the references for the members "RATE", "NPER", and "PMT". The result is returned by calculating the FV from all these parameters and the calculated numeric value is the result that is returned by the function.

 

Example 2: FV (rate, nper, pmt, pv)

=FV (4, 2, -100, -800)	-returns the value for FV (20600)
=FV (9, 4, -900, -10)	-returns the value for FV (1099900)
=FV (10, 2, -500, -300)	-Areturns the value for FV (42300)

 

Let us take the example of a database in PowerOLAP called "Effective Finance" where we have values for rate, the number of payment cycles and the payment value. We shall use this example in this case to find the value for FV by calculating the parameters supplied to the function which are the reference for the rate of the investment, the number of payment cycles in an annuity, the payment amount due and the present value of the investment.



The formula above writes values into the "InvestmentPlanningModel" cube to the FinancialDataFunctions" dimension into the member named "FV2" by creating the appropriate value for this member, based upon the parameters that are given as input to this function, namely the references for the members "RATE", "NPER", "PMT" and "PV. The result is returned by calculating the FV from all these parameters and the calculated numeric value is the result that is returned by the function.

 

Example 3: FV (rate, nper, pmt, pv, type)

=FV (4, 2, -100, -800, 1)	-returns the value for FV (23000)
=FV (9, 4, -700, -10, 0)	-returns the value for FV (877700)
=FV (10, 2, -500, -300, 1)	-returns the value for FV (102300)

 

Let us take the example of a database in PowerOLAP called "Effective Finance" where we have values for rate, the number of payment cycles and the payment value. We shall use this example in this case to find the value for FV by calculating the parameters supplied to the function which are the reference for the rate of the investment, the number of payment cycles in an annuity, the payment amount due, the present value of the investment and finally the type of the investment.



The formula above writes values into the "InvestmentPlanningModel" cube to the "Financial DataFunctions" dimension into the member named "FV3" by creating the appropriate value for this member, based upon the parameters that are given as input to this function, namely the references for the members "RATE", "NPER", "PMT" and "PV" and "TYPE". The result is ascertained by calculating the FV from all these parameters and the calculated numeric value is the result that is returned by the function.