FVLUMPSUM( ) function
Returns the future value of a current lump sum calculated using a constant interest rate.
Syntax
FVLUMPSUM(rate, periods, amount)
Parameters
| Name | Type | Description |
|---|---|---|
| rate | numeric |
The interest rate per period. |
| periods | numeric |
The total number of periods. |
| amount | numeric |
The investment made at the start of the first period. |
Note
You must use consistent time periods when specifying rate and periods to ensure that you are specifying interest rate per period.
For example:
- for monthly payments on a two-year loan or investment with interest of 5% per annum, specify 0.05/12 for rate and 2 * 12 for periods
- for annual payments on the same loan or investment, specify 0.05 for rate and 2 for periods
Output
Numeric. The result is calculated to two decimal places.
Examples
Basic examples
Interest compounded monthly
Returns 1269.73, the future value of a lump sum of $1,000 invested for 2 years at 1% per month, compounded monthly:
FVLUMPSUM(0.01, 2*12, 1000)
Returns 1126.83, the future value of the same investment after the first year:
FVLUMPSUM(0.01, 12, 1000)
Returns 27243.20, the future value of $21,455.82 invested for 2 years at 1% per month, compounded monthly:
FVLUMPSUM(0.01, 2*12, 21455.82)
Interest compounded semi-annually
Returns 1262.48, the future value of a lump sum of $1,000 invested for 2 years at 12% per annum, compounded semi-annually:
FVLUMPSUM(0.12/2, 2*2, 1000)
Interest compounded annually
Returns 1254.40, the future value of a lump sum of $1,000 invested for 2 years at 12% per annum, compounded annually:
FVLUMPSUM(0.12, 2, 1000)
Remarks
What is future value?
The future value of an invested lump sum is the initial investment principal plus the accumulated compound interest.
Related functions
The PVLUMPSUM( ) function is the inverse of the FVLUMPSUM( ) function.
ACL Scripting Guide 14.1