This time its compounded annually. Future value formula The basic future value can be calculated using the formula. How to Calculate Compound Interest Using the Future Value FV Formula Excel.
A the future value or FV of the investmentloan including interest P the principal investment amount the initial deposit or loan amount also known as present value or PV r the annual interest rate expressed in decimal form decimal 100.
An individual decides to invest 10000 per year deposited at the end of each year at an interest rate of 6 compounded annually. R is also known as rate of return. FV 20000 10275 4. 8 F V P V 1 r m m t P M T r m 1 r m m t 1 1 r m T.