Future Value Financial Function - Microsoft Excel
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This presentation explains the Future Value Function which is one of the Microsoft Excel's Financial Function, it describes the same with scenarios & examples
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Future Value Financial Function - Microsoft Excel
- 5. Payment (PMT): This is the fix amount which I can save in each interval in this case the interval is year No of Periods (NPER): This is the number of periods for which I am planning the saving for Interest (RATE): The interest rate which the bank will offer me for this savings
- 6. Scenario 1 - Practical Example Outflow: As discussed in the first slide it is an outflow so represented it in negative
- 8. Present Value (PV): Note, that in this example I don’t have any equal payment amount but this time I have a single amount in my hand that is why I am treating it as Present Value and will not use the Payment (PMT) parameter No of Periods (NPER): This is the number of periods for which I am planning the saving for Interest (RATE): The interest rate which the bank will offer me for this savings
- 9. Scenario 2 - Practical Example Optional Parameter: As you can see as I don’t have the payment parameter I have left it by entering a 0 instead of payment value Outflow: As I am going to deposit the same to the bank and it is an outflow so represented it in negative