Rate of interest as decimal (not per cent) per period
Number of compounding periods
A fixed payment, paid either at the beginning or ar the end (specified by when)
Present value
When payment was made
The value at the end of the nper periods
v0.0.12
What is the future value after 10 years of saving $100 now, with an additional monthly savings of $100. Assume the interest rate is 5% (annually) compounded monthly?
import { fv } from 'financial'
fv(0.05 / 12, 10 * 12, -100, -100) // 15692.928894335748
By convention, the negative sign represents cash flow out (i.e. money not available today). Thus, saving $100 a month at 5% annual interest leads to $15,692.93 available to spend in 10 years.
The future value is computed by solving the equation:
fv + pv * (1+rate) ** nper + pmt * (1 + rate * when) / rate * ((1 + rate) ** nper - 1) == 0
or, when rate == 0:
fv + pv + pmt * nper == 0
Generated using TypeDoc
Compute the future value.