- Function InvestmentConstantFutureValue(PresentValue, Payment, NumberPeriods, InterestRate, Type)
InvestmentConstantFutureValue
The function InvestmentConstantFutureValue
returns the future value
of an investment based on periodic, constant payments and a constant
interest rate.
InvestmentConstantFutureValue(
PresentValue, ! (input) numerical expression
Payment, ! (input) numerical expression
NumberPeriods, ! (input) numerical expression
InterestRate, ! (input) numerical expression
Type ! (input) numerical expression
)
Arguments
- PresentValue
The total amount that a series of future payments is worth at this moment. PresentValue must be a real number.
- Payment
The periodic payment for the investment. Payment must be a real number.
- NumberPeriods
The total number of payment periods for the investment. NumberPeriods must be a positive integer.
- InterestRate
The interest rate per period for the investment. InterestRate must be a numerical expression in the range \((-1, 1)\).
- Type
Indicates when payments are due. \(Type = 0\): Payments are due at the end of each period. \(Type = 1\): Payments are due at the beginning of each period.
Return Value
The function
InvestmentConstantFutureValue
returns the cash balance you want to attain after the last payment is made.
Note
This function can be used in an objective function or constraint and the input parameters PresentValue, Payment and InterestRate can be used as a variable.
The function
InvestmentConstantFutureValue
is similar to the Excel function FV.
Example
Receiving regularly money over time, leads to a debt:
! Receiving 10 per period,
! for 10 periods, and
! an interest of 4%,
! results in a debt of 120.06
_p_constFutureValue := InvestmentConstantFutureValue(
PresentValue : 0,
Payment : 10,
NumberPeriods : 10,
InterestRate : 0.04,
type : 0);
block where single_column_display := 1, listing_number_precision := 6 ;
display _p_constFutureValue;
endblock ;
The future value computed is negative, indicating a debt:
_p_constFutureValue := -120.061071 ;
References
General equations for investments with constant, periodic payments.