The future value of money is how much it will be worth at some time in the future. The future value formula shows how much an investment will be worth after compounding for so many years.
FV(rate, NPER, PMT, PV, type) Returns the future value of an investment based on periodic, constant payments and a constant interest rate.
- Rate is the periodic interest rate.
- NPER is the total number of periods.
- PMT is the annuity paid regularly per period.
- PV (optional) is the present cash value of an investment.
- Type (optional) defines whether the payment is due at the beginning (1) or the end (0) of a period.