# FV()

Future value of a capital

Syntax

  FV (nDeposit, nInterest, nPeriods) --> nFutureValue

Arguments

  <nDeposit> amount of money invested per period <nInterest> rate of interest per period, 1 == 100% <nPeriods> period count

Returns

  <nFutureValue> Total value of the capital after <nPeriods> of paying <nDeposit> and <nInterest> interest being paid every period and added to the capital (resulting in compound interest)

Description

  FV() calculates the value of a capital after <nPeriods> periods. Starting with a value of 0, every period, <nDeposit> (Dollars, Euros, Yens, ...) and an interest of <nInterest> for the current capital are added for the capital (<nInterest>=Percent/100). Thus, one gets the non-linear effects of compound interests: value in period 0 = 0 value in period 1 = ((value in period 0)*(1+<nInterest>/100)) + <nDeposit> value in period 2 = ((value in period 1)*(1+<nInterest>/100)) + <nDeposit> etc.... value in period <nPeriod> = ((value in period <nPeriod>-1)*(1+<nInterest>/100))< + <nDeposit> = <nDeposit> * sum from i=0 to <nPeriod>-1 over (1+<nInterest>/100)^i = <nDeposit> * ((1+<nInterest>/100)^n-1) / (<nInterest>/100)

Examples

          // Payment of 1000 per year for 10 years at a interest rate
          // of 5 per cent per year

          ? fv (1000, 0.05, 10)  --> 12577.893
    Tests
          fv (1000, 0.00, 10) == 10000.0
          fv (1000, 0.05, 10) == 12577.893

Status

  Ready

Compliance

  FV() is compatible with CT3's FV().

Platforms

  All

Files

  Source is finan.c, library is libct.

See Also

- PV()
- PAYMENT()
- PERIODS()
- RATE()