Modern healthcare requires a modern cloud. View this brief video to understand how the Concerto Cloud for Healthcare can help your organization.

Solved

Posted on 1998-10-15

I am doing a project that has to contain a Programmer Defined Function that Calculates a Future value. the formula I was given is;

FV = PV * (1+ (i/m)) m*y ('m*y are exponents)

PV=Present value

i=Annual Interest rate

m=Number of Compounding Periods Per Year

y=Number of years

Here is what I have;

'This Project will compute the Future Value of a given Present

'Value Amount.

Option Explicit

Private Sub Cmd_ComputeFutureValue_Click()

'This compute's the Future Value.

Dim Exponent As Double

Dim FutureValue As Currency

Dim InterestRate As Double

Dim NumberOfYears As Integer

Dim PeriodsPerYear As Integer

Dim PresentValue As Currency

PeriodsPerYear = Val(Txt_InputPmtPeriodsPerYear.Text)

InterestRate = Val(Format$(Txt_InputAnnualInterest.Text, "#0.00"))

NumberOfYears = Val(Txt_InputNumberOfYears.Text)

PresentValue = Val(Txt_InputPresentValue.Text)

Exponent = Exp(PeriodsPerYear * NumberOfYears)

FutureValue = PresentValue * (1 + (InterestRate / PeriodsPerYear)) ^ Exponent

Lbl_ShowFutureValue.Caption = Format$(FutureValue, "Currency")

End Sub 'Cmd_ComputefutureValue_Click

Private Sub Form_Load()

'This shows all Text Boxes clear at start of Program

Txt_InputAnnualInterest.Text = ""

Txt_InputNumberOfYears.Text = ""

Txt_InputPmtPeriodsPerYear = ""

Txt_InputPresentValue.Text = ""

Lbl_ShowFutureValue.Caption = ""

End Sub 'Form_Load

Here is what I get when I enter my values,

for present value; 1

for annual interest rate; 10

for payment periods per Year; 12

for Number of years; 1

I get the result for future value as, $1.83

I know the Ansewer should be $1.10

I Think one of the Problems is that the Interest Rate is not using the decimal. And The Exponent of m*y (Number of Compuonding Periods Per Year * Number of Years) Isnt being used Correctly.

How do I fix this In the Code?

And How would I Write it in a Programmer Defined Function?

FV = PV * (1+ (i/m)) m*y ('m*y are exponents)

PV=Present value

i=Annual Interest rate

m=Number of Compounding Periods Per Year

y=Number of years

Here is what I have;

'This Project will compute the Future Value of a given Present

'Value Amount.

Option Explicit

Private Sub Cmd_ComputeFutureValue_Cli

'This compute's the Future Value.

Dim Exponent As Double

Dim FutureValue As Currency

Dim InterestRate As Double

Dim NumberOfYears As Integer

Dim PeriodsPerYear As Integer

Dim PresentValue As Currency

PeriodsPerYear = Val(Txt_InputPmtPeriodsPer

InterestRate = Val(Format$(Txt_InputAnnua

NumberOfYears = Val(Txt_InputNumberOfYears

PresentValue = Val(Txt_InputPresentValue.

Exponent = Exp(PeriodsPerYear * NumberOfYears)

FutureValue = PresentValue * (1 + (InterestRate / PeriodsPerYear)) ^ Exponent

Lbl_ShowFutureValue.Captio

End Sub 'Cmd_ComputefutureValue_Cl

Private Sub Form_Load()

'This shows all Text Boxes clear at start of Program

Txt_InputAnnualInterest.Te

Txt_InputNumberOfYears.Tex

Txt_InputPmtPeriodsPerYear

Txt_InputPresentValue.Text

Lbl_ShowFutureValue.Captio

End Sub 'Form_Load

Here is what I get when I enter my values,

for present value; 1

for annual interest rate; 10

for payment periods per Year; 12

for Number of years; 1

I get the result for future value as, $1.83

I know the Ansewer should be $1.10

I Think one of the Problems is that the Interest Rate is not using the decimal. And The Exponent of m*y (Number of Compuonding Periods Per Year * Number of Years) Isnt being used Correctly.

How do I fix this In the Code?

And How would I Write it in a Programmer Defined Function?

Add your voice to the tech community where 5M+ people just like you are talking about what matters.

- Help others & share knowledge
- Earn cash & points
- Learn & ask questions

3 Comments

increase the points and somebody (may be myself) will definitely take a look in to your source code.

When I run your code, I get an overflow when calculating FutureValue (the exponent is too high).

However, I believe you need to divide your intrest value by 100 to get the correct amount:

InterestRate = Val(Format$(Txt_InputAnnua

Also, check out the FV function in the VB help file.

1) A User-Defined Function is a function that you create that does something you need done. It is exactly like a Sub, but you can assign it a return value which you can't do to a Sub.

For example :

Private Function MyFunction(AreYouHappy As Boolean) As String

If AreYouHappy = True then

MyFunction = "You Are Happy!"

Else

MyFunction = "You Are Not Happy!"

End If

End Function

2) It's no wonder why your code didn't work. You've got the variables declared wrong, you're using the Format() function incorrectly, you forgot to devide by 100 to get percent integer, and MOST IMPORTANT, your equation is wrong!

I tried to mess around with your code some and cleaned it up some, but you need to get the right equation before you can even hope for it to work right. Here's what I had :

'This Project will compute the Future Value of a given Present

'Value Amount.

Option Explicit

Private Sub Cmd_ComputeFutureValue_Cli

On Error Resume Next

' FVal = PVal * (1 + (i / m)) m * y <-- This Equation Is Wrong

' PVal = Present value

' i = Annual Interest rate

' m = Number of Compounding Periods Per Year

' y = Number of years

Dim FVal As Double

Dim PVal As Double

Dim i As Double

Dim m As Double

Dim y As Double

PVal = CDbl(Txt_InputPresentValue

i = CDbl(Txt_InputAnnualIntere

m = CDbl(Txt_InputPmtPeriodsPe

y = CDbl(Txt_InputNumberOfYear

FVal = 0 ' * INSERT CORRECT EQUATION HERE *

Lbl_ShowFutureValue.Captio

End Sub

Private Sub Form_Load()

'This shows all Text Boxes clear at start of Program

'(This code not needed - Just set the Text at Design Time)

' Txt_InputAnnualInterest.Te

' Txt_InputNumberOfYears.Tex

' Txt_InputPmtPeriodsPerYear

' Txt_InputPresentValue.Text

' Lbl_ShowFutureValue.Captio

End Sub 'Form_Load

Also, as clifABB stated, you can use VB pre-defined functions to figure this one out. Look up either FV() as was stated previously, or PMT().

Hope that helps, and hope you give me some points for my time. =]

HATCHET

Question has a verified solution.

If you are experiencing a similar issue, please ask a related question

Course of the Month5 days, 2 hours left to enroll

Join the community of 500,000 technology professionals and ask your questions.