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The-PC-Guy, Computer Manager
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# I WANT TO DETERMINE THE FUTURE VALUE FOR A FIXED ANNUAL AMOUNT

I WANT TO DETERMINE THE FUTURE VALUE FOR A FIXED ANNUAL AMOUNT DELIVERED TO US IN PAYMENTS DIVIDED MONTHLY, QUARTERLY, OR ANNUALLY, AT THE END OF EACH TIME PERIOD, WHEN EACH AMOUNT DELIVERED IS PROMPTLY INVESTED AT SEVERAL ASSUMED INTEREST.

IF YOU CAN ACCESS MY COMPUTER, IT THE EASIEST MEANS OF ADDRESSING THIS ISSUE MAY BE TO DO THAT AND VIEW THE FORM YOU WILL SEE ON MY SCREEN.

I''M USING A MAC MINI COMPUTER USING MOUNTAIN LION, BUT ALSO USING AN EXCEL PROGRAM INSTALLED IN THAT COMPUTER THROUGH OFFICE FOR MAC.

FV is the correct formula to use

the important thing to remember with FV is to be especially careful with the number of periods and interest rate.

Start with a set number in years for example 5 years. Then if it is annual your number of periods is 5, monthly is 60, quarterly is 20 and so on. That way all the time frames would be the same.

The interest rate is always in apr, so it is important to divide the interest rate by the number of payments per year. then you will get correct values. Also interest is always entered as a decimal number so 3 percent would be entered into excel as 0.03 not 3 as 3 would be 300 percent. hope that makes sense.

So to get the correct interest rate you would divide the interest rate by the number of payments per year in the FV formula. So \$125 quarterly payment at 3.5 percent for 5 years would be entered, say you start with a \$1000 present value, would be entered into excel like this

=-FV(0.035/12,20,125,1000,0)

hope this makes sense to you.

http://ge.tt/5PTvBhs/v/0?c

let me know if it is clearer to you, or if you have any problems with the formula provided. Or if I even misunderstood what you needed
Customer: replied 3 years ago.

Sorry for the extended time it required for me to confirm that the instructions you provided did indeed, resolve the issue, I'd presented.

A few small comments are: A) for the interest rate, I found it easier to enter to enter 3%% rather than the 0.03 suggested, and it yielded the same result, B), the example presented used resulted in a negative result. That was easily corrected by entering the "pmt" as a negative amount rather than the positive amount used in the example, C) the example displayed only 4 entries when the FV functions displayed 5 entries. I learned later that, it was not necessary to make the fifth entry.

In an overall sense,the above comments are small. You did find a solution to my issue and did so in a time frame, reasonable for my Medium Urgency request.