I. Intro

The FV function returns the present value of an investment.

II. Explanation

•Formula: =FV(rate,nper,pmt,[pv],[type])

•Parameters:

◦rate (required): The interest rate of the loan. If you borrow a loan at an annual interest rate of 12% to buy a house and repay the loan monthly, the monthly interest rate is 12%/12=1%.

◦nper (required): The total number of repayments for this loan.

◦pmt (required): The payment amount for each period; the amount remains unchanged throughout the annuity period. Pmt usually includes principal and interest, but not taxes and other fees

◦[pv](optional): The present value, or the sum of the current value of a series of future payments; also known as the principal.

◦[type] (optional): Number 0 or 1 demonstrates whether the payment is made in the start period or end period.

•Example: =FV(2%,12,100,400,0)

•Note:

◦In Feishu Sheets formulas, the interest rate, which is the first parameter, can't be 0.

◦You should ensure that the same unit is used for the specified interest rate and total number of payments. For example, it is the same with a loan for which the annual interest rate for a four year period is 12%. If repayments are made monthly, the interest rate is 12%/12 ("/" meaning "divided by"), so nper should be 4*12. If repayments are made yearly, the interest rate should be 12%, and pner should be 4.

III. Steps

Use the FV function

1.Select a cell and enter =FV.

2.Enter formula parameters =FV(2%,12,100,400,0) into the cell.

3.Press Enter to display the result in the cell, which is -1848.505691.

Delete the FV function

Select the cell with the FV function applied, and press Delete to clear the formula from the selected cell.

IV. Scenarios

•Investment essential: Use the FV function to quickly calculate the future value of an investment

The value of funds will change according to different financial environments, which is how we have the concept of present value and future value. When investing, you can use the FV function to calculate the future value; simply enter the required parameters to get your results with just a single formula.

•Formula used in the figure below: =FV(B2/12,B3,B4,B5,B6)

•Formula parameter explanation:

◦In the figure below, we want to calculate the future value of an investment. Since a monthly payment is used in the figure below, the annual interest rate needs to be converted to a monthly interest rate, which is 8%/12.

◦Click the remaining cells in sequence to enter them as parameters. Note that only pv and type are optional, all others are required values.

◦Press Enter to get the results.