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I am working on a problem set that involves calculating the future value of a series...

I am working on a problem set that involves calculating the future value of a series of payments over 18 years. The first year, there is one lump payment and the remaining years there is a lesser payment but remains the same amount paid annually.

When I use the FV function in excel and apply the first lump as PV, and the following identical payments as PMT, I get the answer, however, to cross check my work, I run the NPV function over all the values, then calculate the FV with the NPV, and I am getting a different answer. Any ideas why I may be getting as different answer?

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Answer:

Your different answers maybe due to the calculation method for NPV in excel

Can you please try adding investments seperately followed by the PMT in NPV functions for the calcualtion of PV.

For Instance let's say Investment of -$10,000 is in cell B2 and rest of the cells from B3 to B10 has the Payment numbers,try calcualting NPV as [ B2+NPV(Rate, B3:B10) ] instead of using the NPV function for the whole row ranging from B2 to B10.

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