What is the FV formula used in excel ? also explain the formula as well .

Question

Question

business finance

Answer 1

Answer #1

FV stands for future value

it can be calculated in excel using a formula or function

FV (rate, nper, pmt, [pv], [type])

rate - The interest rate per period.
nper - The total number of payment periods.
pmt - The payment made each period. Must be entered as a negative number.
pv - [optional] The present value of future payments. If omitted, assumed to be zero. Must be entered as a negative number.
type - [optional] When payments are due. 0 = end of period, 1 = beginning of period. Default is 0.

Example given for better understanding

FV(rate, nper, pmt, (pv], [type]) FV for compound interest paid monthly Present value Interest rate Term (years) Compounding

Answer 2

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