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Chapter 18. Building Investment Formulas > Calculating the Future Value

Calculating the Future Value

Just as the payment is usually the most important value for a loan calculation, the future value is usually the most important value for an investment calculation. After all, the purpose of an investment is to place a sum of money (the present value) and in some instrument for a time, after which you end up with some new (and, hopefully, greater) amount: the future value.

To calculate the future value of an investment, Excel offers the FV() function:


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