Investment Studio > Expressions > Functions > Financial > FV
float fv(float interest_rate, integer payment_periods, float periodic_payment, float present_value = 0, integer paymentTiming = 0)
Returns the future value of a series of periodic, fixed payments given a fixed interest rate.
interest_rate is the interest rate per payment period.
payment_periods is the total number of payment periods to consider.
periodic_payment is the fixed amount (e.g. a bond coupon) paid for each payment period. It's positive for inflows, negative for outflows.
present_value is the initial value of the investment, e.g. the amount deposited into a bank account in order to receive a series of interest payments. It's a positive number if it represents an initial payment to the investor, a negative number if it represents a payment made by the investor (e.g. a bank deposit). If omitted, it defaults to 0.
payment_timing is used to specify whether payments are made at the end of each period (= 0) or at the beginning of each period (= 1). If omitted, it defaults to 0.
Example
You deposit USD 10000 into a bank account which pays 2% annual interest, compunded quarterly. In addition, you deposit USD 1000 at the beginning of every quarter. After two years, the amount in the account will be
=fv(2% / 4, 4 * 2, -1000, -10000, 1)
» USD 18589.19.