The FV function calculates compound interest and return the future value of an investment over a specified term. To configure the function, we need to provide a rate, the number of periods, the periodic payment, the present value:
- Present value (pv) is the named range G4
- Rate is provided as as annual rate/periods, or rate/C5
- Number of periods (nper) is given as periods * term, or C5*term
- There is no periodic payment, so we use zero (0)
By convention, the present value (pv) is input as a negative value, since the $1000 "leaves your wallet" and goes to the bank during the term.
The named ranges automatically behave like absolute references, so there is no need to use dollar signs ($).