FVANNUITY( ) function

Returns the future value of a series of payments, which represents the sum of the payments plus interest.

Syntax

FVANNUITY(rate, periods, payment <,type>)

Parameters

rate

Numeric. The interest rate per period.

periods

Numeric. The number of payment periods in the term.

payment

Numeric. The payment made in each period. Payment must remain constant over the life of the annuity.

type

Optional. Numeric constant. Specify 0 if payments are due at the end of the period, or 1 if payments are due at the beginning of the period. If the type parameter is omitted the default value of 0 will be used.

Output

Numeric.

Remarks

You can use this function to determine how much an annuity accumulates over time. The future value of a series of payments is the total amount that the series adds up to, with compound interest. For example, when you deposit the same amount of money into an account every month, the ending balance is the future value; that is, the sum of the payments plus accumulated compound interest.

You must ensure that you use consistent units to specify the rate and periods. For example, if you make monthly payments on a two-year loan at a rate of 6 percent, use 0.06/12 for rate and 2 * 12 for periods. If you make annual payments on the same loan, use 0.06 for rate and 2 for periods.

Examples

The following example calculates the future value that accumulates if you put $1000 per month for a year into an account earning 1% per month:

FVANNUITY(0.01, 12, 1000)

returns 12682.50.

The following example calculates the amount that accumulates if you put $2000 per month for three years into an account earning 7 percent per annum compounded monthly:

FVANNUITY(0.07/12, 3*12, 2000)

returns 79860.20.



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