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<< Click to Display Table of Contents >> FVSCHEDULE (future value) |
Syntax:
FVSCHEDULE(PV, Rates)
Description:
Returns the future value of an initial principal after applying a series of variable compound interest rates.
This function is applicable to investments with just one payment (made at the beginning) and a fixed interest rate.
You can use this function to calculate the future value (= terminal value) of a loan, for example.
The function expects the following arguments:
PV is the present value.
Rates is a cell range or an array containing the different interest rates (in their actual order, namely, rate for the first period, rate for the second period, etc.)
Example:
You have an investment of $10,000 that pays 5% interest in the first, 5.2% in the second, 5.5% in the third and 5.9% in the fourth year. To calculate the future value of this investment, you enter the four interest rates (in the correct order) in cells A1 to A4, for example, and then employ the following formula:
FVSCHEDULE(10000, A1:A4) returns 12341.09
The different interest rates can also be entered directly using the following form:
FVSCHEDULE(10000, {5%, 5.2%, 5.5%, 5.9%})
See also: