Returns the future value of an investment.

Syntax

FV(<payment expN>, <interest expN>, <term expN>)

<payment expN>

The amount of the periodic payment. Specify the payment in the same time increment as the interest and term. The payment can be negative or positive.

<interest expN>

The interest rate per period expressed as a positive decimal number. Specify the interest rate in the same time increment as the payment and term.

<term expN>

The number of payments. Specify the term in the same time increment as the payment and interest.

Description

Use FV( ) to calculate the amount realized (future value) after equal periodic payments (deposits) at a fixed interest rate. FV( ) returns a float representing the total of the payments plus the interest generated and compounded.

Express the interest rate as a decimal. For example, if the annual interest rate is 9.5%, <interest expN> is .095 (9.5/100) for payments made annually.

Express <payment expN>, <interest expN>, and <term expN> in the same time increment. For example, if the payment is monthly, express the interest rate per month, and the number of payments in months. You would express an annual interest rate of 9.5%, for example, as .095/12, which is 9.5/100 divided by 12 months.

The formula dBASE Plus uses to calculate FV( ) is as follows:

image\F_FV.gif

where int = rate / 100

For the future value an investment of $350 made monthly for five years, earning 9% interest, the formula expressed as a dBL expression looks like this:

? FV(350,.09/12,60) // Returns 26398.45
? 350*((1+.09/12)^60-1)/(.09/12) // Returns 26398.45

In other words, if you invest $350/month for the next five years into an account that pays an annual interest rate of 9%, at the end of five years you will have $26398.45.

Use SET DECIMALS to set the number of decimal places FV( ) displays.