Fv(Rate, Nper, Pmt, Pv, Type)
Returns the future value of an annuity investment with constant periodic payments and fixed interest rate.
The result is positive if you receive money at the end of the annuity’s lifetime, and negative if you must make a payment at the end of the annuity’s lifetime.
You invest $1000 in an annuity that pays 6% annual interest, compounded monthly (0.5% per month), that pays out $50 at the end of each month for 12 months, and then refunds whatever is left after 12 months. The amount refunded is:
Fv(0.5%, 12, 50, -1000) → $444.90
You borrow $50,000 at a fixed annual rate of 12% (1% per month). You make monthly payments of $550 for 15 years, and
ep Σ PPmt(Rate,n,Nper,Pv,0,Type) n=sp
then pay off the remaining balance in a single balloon payment. That final balloon payment is (the negative is because it is a payment for you):
-Fv(1%, 15*12, -550, 50000) → $25,020.99
You open a fixed-rate bank account that pays 0.5% per month in interest. At the beginning of each month (including when you open the account) you deposit $100. The amount in the account at the end of the each of the first three years is:
Fv(0.5%, [12, 24, 36], -100, 0, True) → [$1239.72, $2555.91, $3953.28]