FVSCHEDULE
The FVSCHEDULE function calculates the future value of an initial principal after applying a series of compound interest rates over multiple periods. It helps in financial forecasting by considering different interest rates for different time intervals. The function returns the accumulated amount after all periods.
Syntax 🔗
=FVSCHEDULE(Principal
, Schedule
)
Principal | The initial amount of money or investment. |
Schedule | An array or reference to a range that contains the compounding interest rates per period. |
About FVSCHEDULE 🔗
Use the FVSCHEDULE function in Excel to calculate the future value of an investment with varying compound interest rates over different periods. This function helps you determine how an initial principal amount grows under multiple interest rates applied sequentially. It's useful for evaluating potential investment returns when interest rates change over time, and for planning financial strategies in dynamic market conditions.
Examples 🔗
Suppose you start with an investment of $10,000 and expect it to grow with interest rates of 3%, 4%, and 5% over the next 3 years, applied annually. You can determine the future value of your investment using the FVSCHEDULE function like this: =FVSCHEDULE(10000, {0.03, 0.04, 0.05})
Imagine you have a principal amount of $5,000, which you invest at interest rates of 2%, 2.5%, and 3% over 5 successive quarters. To find the future value under these compound interest rates, apply the FVSCHEDULE function: =FVSCHEDULE(5000, B2:D2), with the interest rates located in cells B2:D2.
notes
Notes 🔗
This section is reserved for adding notes about the Excel function. You can include any details or tips here that might be helpful when using the function.