Skip to content

Latest commit

 

History

History
28 lines (21 loc) · 953 Bytes

fv-formula.md

File metadata and controls

28 lines (21 loc) · 953 Bytes

Using the FV formula

The FV function calculates the future value of an investment based on an interest rate.

So for example, say you wanted to see what a £1000 starting balance looked like after 10 years at 5% interest per year you would write.

=(FV(5%,10,0,-1000))

Which gives a total of £1,628.89

Or say you have a £1000 starting balance, you're depositing £100 every month, and expecting interest to compound every month for 120 months you could write

=(FV(interest_rate / 12, months, monthly_depoists, starting_balance))
---
=(FV(5%/12,120,-100, -1000))

Which gives a total of £17,175.24

Plugging in your numbers, to see your balance in 27 years time we could write

=(FV(12.01%,27,-18000,0))

Which gives you a total of £3,053,907.38