Learn about the FV financial function and how it calculates the future value of an investment based on a constant interest rate, using either periodic, constant payments or a single lump sum payment.
FV, one of the financial functions, calculates the future value of an investment based on a constant interest rate. You can use FV with either periodic, constant payments, or a single lump sum payment.
As the compounding periods are monthly (=12), we divided the interest rate by 12. Also, for the total number of payment periods, we divided by compounding periods per year. As the monthly payments are paid out, they are entered into the function as negative values.
E78 = FV(F74/F76,F75*F76,-F73,-F72)
How to Learn Financial Modeling
Master financial modeling with hands-on training. Financial modeling is a technique for predicting the financial performance of a business or other type of institution over time using real-world data.
