Calculate the future value of a principal amount with periodic payments based on interest rate and duration. Plan your investments wisely.

Future Value (FV) of a Principal and Periodic Payment

Purpose

The Future Value (FV) calculator function is used to calculate the future value of an investment based on the initial principal amount, periodic payments, interest rate, and duration.

Use Cases

• Planning for retirement savings
• Calculating the growth of an investment over time
• Determining the future value of regular contributions to a savings account

How to Use

1. Enter the required input values in the respective fields.
2. Click on the "Calculate" button to see the future value of your investment.

Input Values

1. Present Value: The initial principal amount of the investment.
2. Interest Rate: The annual interest rate for the investment (default unit is percentage per year).
3. Duration: The total duration of the investment in years.
4. Periodic Payment: The amount of money you plan to invest periodically.
5. Payment Interval: The frequency at which you make the periodic payments (e.g., monthly, quarterly).
6. Payment When: The timing of the periodic payments relative to the compounding period.

Output Values

1. Future Value: The total value of the investment after the specified duration.
2. Cash Flow: The total cash flow involved in the investment.

Any other Instruction

• Ensure all input values are entered correctly to get accurate results.
• Review the calculated future value to make informed financial decisions.

Steps of Calculation

1. Calculate the interest rate per compounding period.
2. Determine the total number of compounding periods based on the duration and payment interval.
3. Calculate the future value of the investment using the provided formula.

Technical Parameters

• present_value, pv_part, interest_rate, duration, periodic_payment, pp_part, payment_interval, payment_when

Return Values

• Future Value, Cash Flow

Example Expressions

You can use the following expressions to directly evaluate in a non-interactive manner using eva():

fv(present_value=150000, interest_rate='8 pct/yr', duration='10 yr', periodic_payment=2000, payment_interval='yr', payment_when='1')
fv(present_value=80000, interest_rate='5 pct/yr', duration='20 yr', periodic_payment=500, payment_interval='mo', payment_when='1')

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