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Variables Excel
Variables generally used uses
Future Value FV FV
Present Value PV PV
Annual Interest Rate i
Number of compounding
periods per year n
Years x
Period Rate i/n rate
Total Number of Periods x*n nper or npery
FV = PV*(1+i/n)^((x*n)
FV(rate,nper,pmt,[pv],[type])
Total Interest
ompounded monthly, how
Numbers and
Formulas
?
10000
0.06
12
10
0.01
120
$18,193.97
$18,193.97
$8,193.97
If we invest $100,000.00 with an annual rate of 7.00% compounded 12
times a year for 10 years; what is the future value of the investment?
Present Value = PV 100,000.00
Years = x 10
FV = PMT*((1+i/n)^(x*n)-1)/
(i/n)*(1+i/n) =
Total Paid in =
Q: If you need $526,140.68 when you retire; how much do you need to invest each period if
you are 28 and you plan to retire when you are 70 (i = 10.00%; n = 12).
FV = $526,140.68
i= 0.1
n= 12
Age now = 28
Age when you retire = 70
x= 42
PMT = $67.94
Total Paid out = 34,241.32
Total Received =
Total Interest Received = (34,241.32)
you want to withdraw -
you can earn 6.00%