The FV function can calculate compound interest and return the future value of an investment. To configure the function, we need to provide a rate, the number of periods, the periodic payment, the present value.
To get the rate (which is the period rate) we use the annual rate / periods, or C6/C8.
To get the number of periods (nper) we use term * periods, or C7 * C8.
There is no periodic payment, so we use zero.
By convention, the present value (pv) is input as a negative value, since the $1000 "leaves your wallet" and goes to the bank during the term.
To calculate simple interest in Excel (i.e. interest that is not compounded), you can use a formula that multiples principal, rate, and term. This example assumes that $1000 is invested for 10 years at an annual interest rate of 5%. Simple interest...
To calculate annual compound interest, you can use a formula based on the starting balance and annual interest rate. In the example shown, the formula in C6 is: = C5 + ( C5 * rate ) Note: "rate" is the named range F6. How this formula works If you...
The Excel FV function is a financial function that returns the future value of an investment. You can use the FV function to get the future value of an investment assuming periodic, constant payments with a constant interest rate.
Excel Formula Training
Formulas are the key to getting things done in Excel. In this accelerated training, you'll learn how to use formulas to manipulate text, work with dates and times, lookup values with VLOOKUP and INDEX & MATCH, count and sum with criteria, dynamically rank values, and create dynamic ranges. You'll also learn how to troubleshoot, trace errors, and fix problems. Instant access. See details here.