Excel 2013 - Calculating Future Value FV Problem
I'm following a video to calculate the future value of a CD and am not getting the same answer as the video.
What am I doing wrong (see the two attached graphics.
What am I doing wrong (see the two attached graphics.
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Hi RGONZO!!!! It was the DARNED FORMATTING that was hiding the decimals!!!!!
THE FORMATTING DID IT!!!
BLAME THE FORMATTING.
Have a great holiday and Thank you!
THE FORMATTING DID IT!!!
BLAME THE FORMATTING.
Have a great holiday and Thank you!
The future value of an annuity is simply the future value of all your contributions based on the fixed rate of interest your investment accrues each year. If you know how much you plan to invest each year and the fixed rate of return your annuity guarantees, you can easily determine the value of your account at any point in the future.
The formula for the future value of an annuity assumes an ordinary annuity, meaning payments are made at the end of each period, and all your payments are of equal value.
FV = P * {(((1+R)^N) - 1) / R}
In which P is the payment amount, R is the rate of interest and N is the number of periods.
So the correct answer should be =10000*(((1+0.05)^6)-1/0.0
= -186599.0436
That is what we call in strategic financial management (Appraisals)
Regards
Chris
Lusaka Zambia
Southern Africa