FVSCHEDULE: Calculating the future value of an investment with variable returns


show more FVSCHEDULE: Calculating the future value of an investment with variable returns provides you with in-depth training on Business. Taught by Curt Frye as part of the Excel 2010: Financial Functions in Depth show less
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FVSCHEDULE: Calculating the future value of an investment with variable returns

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 of the FVSchedule function to determine the future value of your investment. FV schedule has two arguments, which are the present value which is the principal of the investment, and the schedule of interest rates. Those arguments are set out in this workbook. You can see that I have the principal, the starting value, in cell C4 and then the rates in cells C5 through C7.

When you put in the interest rates they almost be applied for the same timeframe. So for example, in this case I have an annual interest rate. If you're evaluating over months then you would need to divide those rates by 12, so that they represented a monthly rate. Now I can create my formula in cell C10. So it's =fvschedule and as soon as fvs appears in the cell I get t...

FVSCHEDULE: Calculating the future value of an investment with variable returns
Video duration: 2m 21s 2h 18m Intermediate

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FVSCHEDULE: Calculating the future value of an investment with variable returns provides you with in-depth training on Business. Taught by Curt Frye as part of the Excel 2010: Financial Functions in Depth

Subjects:
Business IT
Software:
Excel
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