Sometimes investments don’t have a single interest rate applied to them. For example, you could put money into a fund that guarantees a return of 4% for the first year, 5% for the second year, and 6% for the third year. In this case, you can use the FVSCHEDULE function to determine the future value of your investment.
- [Voiceover] Sometimes investments don't have…a single interest rate applied to them.…For example, you could put money into a fund…that guarantees a return of 4% for the first year,…5% for the second year, and 6% for the third year.…If that's the case,…you can evaluate the investment…using the FVSCHEDULE function…to determine the future value.…I'll demonstrate how to use…the FVSCHEDULE function in this movie.…My sample file is FVSCHEDULE0302,…which you can find in the Chapter 3 folder…of your Exercise Files collection.…
There are only two sets of arguments;…the first is the amount that you invest;…in this case, that's in cell C4 and is $10,000;…and the next is an array, or a range of cells,…that contains the differing rates.…So for period one, which we'll just assume is one year,…that's 4%; second year is 5%; and third year is 6%.…I'll click in cell C9, type an equal sign,…and then we'll use the FVSCHEDULE function.…
And again, all we need to enter in is the principle,…which is in cell C4.…Type a comma, and then I need to select the range of cells…
- Analyzing loans, payments, and interest
- Calculating depreciation
- Determining values and rates of return
- Calculating bond coupon dates and security durations
- Calculating security prices and yields
- Calculating prices and yields of securities with odd periods
Skill Level Intermediate
Accounting Foundations: Fundamentalswith Earl Kay Stice2h 46m Appropriate for all
1. Analyzing Loans, Payments, and Interest
2. Calculating Depreciation
3. Determining Values and Rates of Return
4. Calculating Bond Coupon Dates and Security Durations
5. Calculating Security Prices and Yields
6. Calculating Prices and Yields of Securities with Odd Periods
Additional resources1m 24s
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