FV2 Function

Syntax

Future_Value as N = FV2(N investments,N Interest_rate,N time_periods)

Arguments

investments: Numeric. Amount of each equal investment.
Interest_rate: Interest rate per time period. Numeric
time_periods: Number of time periods (and investments). Numeric

Description

Returns the future value of a stream of equal investments over over a specified fractional term.

Discussion

FV2() returns the future value of a stream of equal Investments, invested at a fixed Interest_Rate for a certain Number_Of_Time_Periods. The investment amount can be either positive or negative; however, the Interest_Rate and Number_Of_Time_Periods must be positive. You use this function to find the amount that an investment will be worth (sum of all principal payments plus accumulated interest) at some future point. FV2() is the same as FV() , except that it does not round up the Number_Of_Time_Periods.

Example

Assume a 7% per annum interest rate. To compute the amount of money in a checking account at the end of one year if you deposit $100 each month at the beginning of the month, use the following expression:

fv(100, (.07/12), 13) -> 1346.487537
fv(100, (.07/12), 12.5) -> 1346.487537
fv2(100, (.07/12), 12.5) -> 1292.795072

Note the differences from FV().