FVANNUITY() calculates the future value of a series of payments.
Use FVANNUITY() when you want to determine how much an annuity will accumulate over time. The future value of a series of payments is the total amount that the series will add up to, with compound interest. For example, when you automatically put the same amount of money in the bank every month, the ending bank balance is the future value to you; that is, the sum of the payments plus accumulated compound interest. For more information, see Financial Functions.
FVANNUITY(rate,periods,amount)
| • | rate is the interest rate per period. |
| • | periods is the total number of payment periods in an annuity. |
| • | amount is the payment made at the end of each period. It cannot change over the life of the annuity. |
The result is returned to two decimal places.
FVANNUITY() assumes a present value of zero and calculates the result based on payments at the end of the period.
If you enter an obviously invalid parameter such as a negative interest rate, Analyzer returns an error.
To calculate the future value that would accumulate if you put $1000 per month for a year into an account earning 1% per month, specify:
FVANNUITY(.01,12,1000) = 12,682.50
To calculate the amount of money that would accumulate if you put $2000 per month for three years into an account earning 7% per annum compounded monthly, specify:
FVA(.07/12,36,2000) = 79,860.20