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.

• FV(.08, 30, 822.48, 0, 1): equals -100,627.03, rounded to two decimal places.
  • This is the future value after 30 years of annual payments of $822.48 made at the beginning of each year, using an annual interest rate of 8% and an initial present value of zero. The result is negative because the payments are entered as positive amounts.

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