FVSCHEDULE Excel Formula

Author Zaheer    Category Formulas     Tags ,

There are a lot of ready to use functions in Excel. One of this is the Financial Function which will allow neophytes and professionals compute in an easier and more convenient way. The function will help in shortening the process of computing interest fees, internal rate of return, yield, and many more.

The Financial Functions are narrowed down into sub-functions for easier and faster use. One of its sub-functions is the Excel FVSCHEDULE which will allow you to compute the future value and the interest fee of an investment.

The series of arguments or the syntax of the FVSCHEDULE Function is FVSCHEDULE(principal, schedule). Wherein, the principal argument is the current value of an investment. As for the schedule, it is the choices of values that will be provided as to when the interest rate will take effect. The schedule can be in a form of a resource cell which has numbers or can also be an empty cell that means the interest fee is zero.

For example, you have an investment of $10,000 and you want to know the interest of your money over the five years. You can use the FVSCHEDULE function and with your investment earning 5% interest for the first two years and on the third to fifth year it will earn 3.5%.

Open an Excel spreadsheet and on cell A1, which will be your first year input the 5.0% same as to cell A2 which will be your second year. For cell A3, A4, and A5 input 3.5% as these cells refers to your third, fourth, and fifth year. On cell B1 input the function =FVSCHEDULE( 1000, A1:A5) and the result will be $12,223.62. this means that your $10,000 investment with the given interest rates yearly will be equivalent to $12,223.62 after five years.

To view the function and the result alternately you can click on Ctrl+` (grave accent). You can also do the viewing by selecting the cell with the results or function and viewing in on the Formula Bar.

As helpful as it may sound, the FVSCHEDULE Function can also have errors. One of these errors is the #VALUE! error. This can happen if the given arguments in the function are not numbers but black cells can still be accepted because it connotes zero interest.

For starters, the #NAME? error can commonly occur when the Add-Ins for the Analysis ToolPak are not activated. For Excel 2003, you can activate it by choosing from the drop-down Tool list the Add-Ins option. The window for the Add-Ins will appear and on the list select the Analysis ToolPak and hit OK.

For those whop are using Excel 2007 and 2010 find the Excel Options and on the list click the Add-Ins. The Mange box will appear and on it select the Excel Add-Ins and hit Go. The window for the Add-Ins will show up and on it select the Analysis ToolPak and hit OK.

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