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  1. #1
    2 Star Lounger
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    Future Value function (offce 2003)

    I just want to make sure I understand the FV function correctly. Here are my test figures:

    6% annual interest rate, monthly payments for 20 years of $100 per month. I'm getting $46,204.09 as my future value. Is that correct?

    I set up the function like this: =FV(0.06/12,20*12,100)

  2. #2
    Plutonium Lounger
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    Re: Future Value function (offce 2003)

    Yes, that is correct. You pay 20 * 12 * $100 = $36,000. The accumulated interest amounts to a little bit over $10,000, and the total amount your investment is worth at the end is $46,204.09.

  3. #3
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    Re: Future Value function (offce 2003)

    thanks for the confirmation. One more question--does this function assume that interest is compounded? If not, is there a function that does?

  4. #4
    Plutonium Lounger
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    Re: Future Value function (offce 2003)

    All these financial functions work with compounded interest.

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