The futurevalue function calculates the final value of a financial transaction given the presentvalue, installment payment, interest rate, and number of payment periods.
futurevalue( presentvalue, installment, rate, periods)
A numeric value (the final value after all payments are made).
If the installment payment increases the value of the investment (e.g., an annuity), the installment must be expressed as a positive amount. If the payment decreases the value of the investment (e.g., loan amortization), the installment must be expressed as a negative amount.
The interest rate, installment payments, and time periods must be based on the same terms. For example, if payments are made monthly on a five-year loan, the number of periods is (12*5) or 60. The interest rate must be expressed in the same terms (the monthly interest rate is the annual rate divided by 12). The interest rate must also be expressed as a whole number (10% is 10, not 0.10).
futurevalue( 10000, 100, 10 / 12, 120)
This example calculates the futurevalue (accumulated balance) of a monthly savings plan, if you start with $10,000 and add $100 every month for 12 years at an annual interest rate of 10%.
futurevalue( 10000, 1200, 10, 12)
This example calculates the futurevalue (accumulated balance) of an annual savings plan, starting with $10,000 and adding $1200 each year for 12 years at an annual interest rate of 10%. Both examples assume that installments are paid at the start of each period.
Note: When typing fractions like 10 / 12, DataEase requires that you type a space before and after the / division symbol.
DataEase financial functions are derived from the formula shown below. (The double asterisks (meaning "raise to the power") cannot be used in a script).
futurevalue = principal * ((1 + (rate/100)) ** periods) + (installment/(rate/100)) * (((1 + (rate/100)) ** periods) - 1)