future value

Interface

Future Value

Evaluate the future value of an investment. This is done by solving the following equations to find the value of fv :

If rate = 0,

If rate /= 0,

Where pv is the present value, rate is the interest rate, nper is the number of periods over which to calculate and pmt is the payment made each period.

Calculating the future value of an investment according to a scedule of compound interest rates is done using the following equation:

Where nper is the number of periods (and in this case entries in the shedule array), pv is the principal value and schedule is an array of compound interest rates.

References:

http://www.vni.com/products/imsl/jmsl/v30/api/com/imsl/finance/Finance.html

Example 1

#include <stdio.h>
#include <codecogs/finance/banking/future_value.h>
 
int main()
{
  double d = Finance::Banking::future_value(0.05, 20, -30000, -30000,
Finance::Banking::pp_StartOfPeriod);
  printf("30,000 set aside per year\n");
  printf("5%% interest compounded yearly\n");
  printf("After 20 years, the value of the investment will be: %7.2f\n\n", d);
 
  d = Finance::Banking::future_value(0.00, 7, -50, 0, Finance::Banking::pp_StartOfPeriod);
  printf("50 set aside per year\n");
  printf("no interest\n");
  printf("After 7 years, the value of the investment will be: %.2f\n", d);
  return 0;
}

Output:

30,000 set aside per year
  5% interest compounded yearly
  After 20 years, the value of the investment will be: 1121176.49
 
  50 set aside per year
  no interest
  After 7 years, the value of the investment will be: 350.00

pp_StartOfPeriod or pp_EndOfPeriod.

Parameters

rate	is the interest rate
nper	is the number of periods
pmt	is the amount set aside each period
pv	is the present value
when	is the point in each period when the payment is made, either

Returns

a double, the future value of the investment.

Authors

James Warren (May 2005)

Source Code

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Other Documentation

<div align="center"> <table border="0"> <tr align="center"><td width="100"><strong>Type</strong></td><td><strong>Description</strong></td></tr> <tr><td align="center" valign="top"><em>pp_EndOfPeriod</em></td><td>Each payment is made at the end of the period.</td></tr> <tr><td align="center" valign="top"><em>pp_StartOfPeriod</em></td><td>Each payment is made at the start of the period.</td></tr> </table> </div>

Source Code

Source code is available when you agree to a GP Licence or buy a Commercial Licence.

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