The must know Excel Financial Functions: Future Value

Future Value : The future value of an asset or investment is the value of asset or investment on a specific date in future. Most of the people who use excel for financial analysis or accounting purpose rely heavily on the excel’s inbuilt function for deriving the future value.

FV = (rate, nper, pmt, [pv], [type])

Example: You just opened a bank account with Rs. 20000 and you have decided to deposit Rs. 4000 at the end of every month for next 10 years. The bank offers 9 per cent annual interest on the savings account. Now, you want to know how much money you will have in your account at the end of 10 years. Here you can use excel’s future value function to calculate the total amount that you will get at the end of 10 years.
Lets break this problem in key variables that will be required by the FV() of Excel.
Rate: 9 per cent per annum. But we need to calculate the monthly rate of interest as the period of payment is monthly. So Rate = 9%/12% = 0.75% or 0.0075 (Take note of the percentage sign).

Periods (nper): 120 months (10 years X 12 Months)

Payment (pmt) : -4000 (since its going out from your pocket, hence the minus sign)

Present Value (pv): – 20000 (same logic as above)

Type : 0 (if payment is deposited at the end of the period), 1 (if payment is deposited at the beginning of the period)

The function now becomes:

FV=(0.75%, 120, -4000, -20000,0)

You will get Rs. 823,084.25 as the result. This is the money you will receive at the end of the 10 years.

The best blog-editor for Mac

I have been searching for a good blog-editor for MacOS and experimented with a number of them (Sadly there are not many available). Most of the professional bloggers on MacOS use either Ecto or MarsEdit and while these are decent options, these are not free and I would not say the best options for amateurs bloggers for two reasons. One, they are still have some bugs, and second, they are not free. There is another option Qumana, which is available all the platforms, but I find it rather slow and buggy.

Finally I settled down to Scribefire, a very powerful browser extension that is available for Firefox, Opera and Chrome and available for all platforms. It offeres all the features of a normal desktop blog-editor and very light on resources. It supports all the major blogging platforms (Blogger, WordPress, Liverjournal) and if you are using any of the free blogging platforms the installation is breeze. You just need to fill in the blog url and it automatically detects the settings.Scribefire-the blog editor

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