Excel Formula Coach
FV function, scenario #1: Use it to find the future value of a series of payments
Calculates the future value for a series of constant payments (such as a payroll deduction for a 401K plan), assuming a constant interest rate.
For example, you're putting $500 away for retirement every month for 10 years, with an expected average return of 5% paid monthly. The future value of these payments to your retirement account will be $77,641.14.
Syntax FV(rate, nper, pmt, [pv], [type])
Tip Wondering why [pv] and [type] are in square brackets? The brackets mean they're optional. If you don't include values for pv and type in your formula, Excel assumes your present value is 0, and that your payments are due at the end of the period.
The FV function has the following arguments — when it's used for a series of payments, the first three are always required:
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