# 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.
###### Who is Participating?

x
I wear a lot of hats...

"The solutions and answers provided on Experts Exchange have been extremely helpful to me over the last few years. I wear a lot of hats - Developer, Database Administrator, Help Desk, etc., so I know a lot of things but not a lot about one thing. Experts Exchange gives me answers from people who do know a lot about one thing, in a easy to use platform." -Todd S.

Commented:
Hi,

I get with the mentioned values
\$205,429.65

but with a Rate of 5.25% which is maybe not shown due to the formatting then I get
\$207,977.38

Regards

Experts Exchange Solution brought to you by

Facing a tech roadblock? Get the help and guidance you need from experienced professionals who care. Ask your question anytime, anywhere, with no hassle.

DirectorCommented:
Future Value of an Annuity

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)-1/0.05)

= -186599.0436

That is what we call in strategic financial management (Appraisals)

Regards

Chris

Lusaka Zambia

Southern Africa
Author Commented:
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!
###### It's more than this solution.Get answers and train to solve all your tech problems - anytime, anywhere.Try it for free Edge Out The Competitionfor your dream job with proven skills and certifications.Get started today Stand Outas the employee with proven skills.Start learning today for free Move Your Career Forwardwith certification training in the latest technologies.Start your trial today
Tax / Financial Software

From novice to tech pro — start learning today.