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<< Click to Display Table of Contents >> FVSCHEDULE (future value) |
Syntax:
FVSCHEDULE(PV, Rates)
Description:
This 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 (initial amount)
Rates is a cell range or an array that contains the different interest rates per period (in their actual order, namely, rate for the first year, rate for the second year, etc.).
Example:
You have an investment of €10,000 that pays 5% interest in the first year, 5.2% in the second year, 5.5% in the third year 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 apply the following formula:
FVSCHEDULE(10000, A1:A4) returns €12341.09
The different interest rates can also be specified directly using the following form:
FVSCHEDULE(10000, {5%, 5.2%, 5.5%, 5.9%})
See also: