In this article, we will learn about how to find the future value of the amount using FV function in Excel.
Future value function returns the future value of the present amount having interest rate over a period.
rate: Interest rate per period
nper: total no. of payment period.
pmt: amount paid each period.
pv - [optional] The present value of future payments must be entered as a negative number.
type - [optional] When any amount is due at the end of the payment. Default is 0.
Use this in an example to understand this.
Here we have a Present value amount, Interest rate and period on which we need to calculate future value of the amount
Use the formula in B6 cell.
B2/12: rate is divided by 12 as we are calculating interest for monthly periods.
-A2: principal amount is in negative so as to get the future value in positive.
And press Enter
Future value of $100,000 at an Interest rate of 6.5% in 5 years will be $138,281.73
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