Function InvestmentSingleFutureValue(PresentValue, PeriodicRate)

# InvestmentSingleFutureValue

The function InvestmentSingleFutureValue returns the future value, the cash balance, of a payment made at this moment, present value, with periodic interest rates.

InvestmentSingleFutureValue(
PresentValue,            ! (input) numerical expression
PeriodicRate             ! (input) one-dimensional numerical expression
)

## Arguments

PresentValue

Payment made at the start of the first period. PresentValue must be a real number. If PresentValue is a negative number it represents an outgoing amount and when it is a positive number it represents an incoming amount.

PeriodicRate

Interest rates which differ per period. PeriodicRate is a one-dimensional parameter, which should contain at least one nonzero number. The periods must be equally spaced in time and the interest rates must be ordered.

## Return Value

The function InvestmentSingleFutureValue returns the future value of the present value, using the periodic interest rates.

## Equation

The future value $$v_f$$ is computed through the equation

$v_f = v_p\prod_{i=1}^n(1+r_i)$

where $$v_p$$ is the present value, and $$r_i$$ the variable, periodic interest rates.

Note

• This function can be used in an objective function or constraint and the input parameters PresentValue and PeriodicRate can be used as a variable.

• The function InvestmentSingleFutureValue is similar to the Excel function FVSCHEDULE.

## Example

Given the local declarations:

Set _s_years {
SubsetOf: Integers;
Index: _i_year;
}
Parameter _p_value {
IndexDomain: _i_year;
}
Parameter _p_npv;

Net present value can be computed as follows:

_s_years := ElementRange(2005,2008);
_p_value(_i_year) := ord(_i_year) * 100 + 50 ;
_p_npv := InvestmentVariablePresentValue( _p_value, 0.07 );
block where single_column_display := 1, listing_number_precision := 6 ;
display _p_npv ;
endblock ;

With the following result in the listing file:

_p_npv := 987.553700 ;