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Part 5. Working with Formulas and Functi... > Finding the Future Value of an Inves...

Finding the Future Value of an Investment (FV)

Click in the cell in which you want the result of the function to appear (this is called the resultant cell).

Click the down arrow next to the AutoSum button on the Standard toolbar and choose More Functions from the list that appears.

The Insert Function dialog box opens. Click the down arrow next to the Or select a category field and choose Financial from the list that appears.

A list of financial-related functions appears in the Select a function list. Scroll through the list to locate the FV function, and double-click it.

INTRODUCTION

If you open a 3% interest-bearing money market account with $100 in January, and make deposits of $100 each month, how much money will you have at the end of the year? Excel can help you calculate the future value of an amount of money, based on a constant interest rate, over a specific number of periods, in which you make a constant payment.


TIP

Function arguments help

If you need help while you are inputting your function arguments, click the Help on this function link in the bottom-left corner of the Function Arguments dialog box.


In the Rate field, type the interest rate per period. For example, type 3%/12 for monthly accrual on a 3% interest-bearing account.

In the Nper field, type the total number of payments for the investment (in this example, 12 deposits).

In the Pmt field, type the amount to be paid in each deposit—in this case, -100. Click OK.

Excel calculates the future investment value and inserts it in the resultant cell.


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