I must not be doing this correctly. I am trying to find the FV of this: PV=100,000 r=.07 n=1 Compounded continuously I used exp(1) for e and this works. but when I type these into excel for FV I get $120,191.40 Should be around 107,250
=100000*EXP(1)^(0.07) = 107250.8181
=FV(EXP(1)^0.07-1,1,0,-100000) ???
dspapo Wrote: ------------------------------------------------------- > =FV(EXP(1)^0.07-1,1,0,-100000) ??? thx guys. When I wasn’t entering in the rate as exp(1)^.07-1
Here is the simple approach: Here is the formula to calculate FV in Excel. FV(rate,nper,pmt,pv,type) Fill the cell like =FV(rate in decimals, periods, Payment if any, Present value, 0) type 0 means end of period type 1 means begin of the period. Make sure your percentage in decimals per period. If annual rate is 12 % and 12 periods then the periodic rate is 0.01 since interest rate is 0.12 (12%). Regards, Sreeni