Calculates the future value that has the same present value as the combination of present value and payment as specified.

FV(InterestRate, Period, Payment, PV, AnnuityType)

InterestRate: this is the interest rate per period (expressed as a decimal, 8% = 0.08).

Period: this represents the number of payments made.

Payment: represents the payment made each period.

PV: equals the present value as of the beginning of the period.

AnnuityType: indicates whether payments are made at the beginning or end of the period. 0 indicates payments are made at the end of the period. 1 indicates payments are made at the beginning of the period.

To calculate the future value of a 10-year amortization payment of a $1,037.03 per year paid at the beginning of each year using an 8% interest rate:

FV(.08, 30, 822.48, 0, 1) equals -100,627.03

The sign of payments and present value relative to future value will be opposite.