FV()

Future value of a capital

Syntax

      FV( nDeposit, nInterest, nPeriods ) --> <nFutureValue>

Arguments

<nDeposit> amount of money invested per period <nInterest> rate of interest per period, 1 == 100% <nPeriods> period count

Returns

<nFutureValue> Total value of the capital after <nPeriods> of paying <nDeposit> and <nInterest> interest being paid every period and added to the capital (resulting in compound interest)

Description

FV() calculates the value of a capital after <nPeriods> periods. Starting with a value of 0, every period, <nDeposit> (Dollars, Euros, Yens, …) and an interest of <nInterest> for the current capital are added for the capital (<nInterest>=Percent/100).

Thus, one gets the non-linear effects of compound interests:

value in period 0 = 0

value in period 1 = ((value in period 0)*(1+<nInterest>/100)) + <nDeposit>

value in period 2 = ((value in period 1)*(1+<nInterest>/100)) + <nDeposit> etc….

value in period <nPeriod> = ((value in period <nPeriod>-1)*(1+<nInterest>/100))< + <nDeposit>

                                           = <nDeposit> * sum from i=0 to <nPeriod>-1 over (1+<nInterest>/100)ˆi

                                          = <nDeposit> * ((1+<nInterest>/100)ˆn-1) / (<nInterest>/100)

Examples

      // Payment of 1000 per year for 10 years at a interest rate
      // of 5 per cent per year

      ? fv( 1000, 0.05, 10 ) // --> 12577.893

Tests

      fv( 1000, 0.00, 10 ) == 10000.0
      fv( 1000, 0.05, 10 ) == 12577.893

Compliance

FV() is compatible with CT3’s FV().

Platforms

All

Files

Source is finan.c, library is libct.

Seealso

PV(), PAYMENT(), PERIODS(), RATE()