Future Value formula

[StevenPS]

I am trying to us the FV funtion to validate some annuity projections. I am not having much success.

Here are the numbers:
Four payments per year each $5569 (at the end of the period)
Age 41 (I need value at age 65) so I figured 96 payments
PV = $181770
Interest rate 6% annually (I entered 1.5% or .015 snice the payments are quarterly)

How do I set up the FV formula to get my investment value at age 65? Is the FV formlua the best formula?


Thanks!
Steve

 

[Jordan213]

You want to know what the net present value of your investment would be at a future date? You're vastly overthinking this. It's the net present value of the remaining cash flows when you're 65. I don't know what the maturity is on your annuity, but if you have 20 years of payments remaining when you're 65, just calculate the net present value of 20 years worth of cash flows from today.

If you want to find today's present value of the investment from 65 until maturity, simply subtract the present value of the entire investment until maturity less the present value from today until you're 65.

I prefer not to use Excel's PV and FV formulas, it's better to calculate it yourself. If you're calculating anything but an annuity, the PV and FV functions are useless anyhow.

 

[Marcelo Branco]

I tried

=FV(0.06/4,96,-5569,-181770,0)

that resulted in $1,938,105.79

Is it what you need?

M.

 

[StevenPS]

Here is what I built in Excel:

Years to 65 24
# payments 96 (four payments per year)
Payment amount -5569
Present Value -181770
Interest Rate 6% 0.015
Future Value $1,938,105.79

I have the FV formula in the cell to calculate the 1.9 million. I want to be able to reproduce this calulation over and over for various seneros. Are you saying this FV formula does not return the accurate value of an investment with periodic payments? I was hoping to just be able to enter the data for each senerio.

Steve

 

[porag07]

Saw some Future value Example. you can search on google or can read text book. or
This calculation process is very easy