FUTURE VALUE Function In Microsoft Excel(FV Function) and FVSCHEDULE FUNCTION | FINANICIAL FUNCTIONS

(1) FUTURE VALUE(FV) FINANCIAL FUNCTION IN MS EXCEL

It is quite helpful and useful to figure out the future value of investment in all organisation and with Excel's FV it can be calculated as follow:

Table of content:

1. FUTURE VALUE(FV) FINANCIAL FUNCTION IN MS EXCEL

1.2. FV Function/Future Value has following syntax and arguments

1.3. FV Function with example

2. FINANCIAL FVSCHEDULE FUNCTION IN MS EXCEL
3. FVSCHEDULE formula with example

 

FV Function/Future Value has following syntax and arguments:

SYNTAX: FV(RATE, NPER, PMT, [PV], [TYPE])

RATE: Rate of interest rate/period

NPER: Number of Periods

PMT: Payment period

PV: Present value

TYPE: It refers to when payment has made

FV Function with example:

Let's assume that ABC company has invested $500 in the year of 2023 with the interest rate of 5%. Now let's calculate what would be the Future Value for this investment in 2026?

And, the equation evaluates to;

(2) FINANCIAL FVSCHEDULE FUNCTION IN MS EXCEL

FVSCHEDULE Function is used when you need to calculated the Future value according to an interest keeps changing during time periods. 

It has the following syntax:

=FVSCHEDULE(PRINCIPAL, SCHEDULE)

Where,

principal refers to the present value of the investment

an array or series of interest rates

FVSCHEDULE formula with example:

Let's assume that ABC company has invested $200 in the year of 2023. Here the interest keeps changing during years. In the years 2024 and 2025 interest would Now let's calculate what would be the Future Value for this investment in 2025?

Here it is:

And, it evaluates to,