# Thread: Future Value function (offce 2003)

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

All these financial functions work with compounded interest.

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