Rushati

Could anyone please help me to rectify the following problem.

Compounded ROI Term(Yrs) Term (Months) TotTerm Instalment
Halfyearly 8% 6 0 =(6+(0/12)) 6 1000
(=8%/2) =6*2 =1000/2
2 0.04 12 =500


If I use Excel FV Function like this
FV(0.04, 12, -500, 0, 1)

The result becomes 7813.42

But if I calculate in the following way:

1000 6 =ROUND(1000*(1+(0.04))^(12),0) = 1601
1000 5 =ROUND(1000*(1+(0.04))^(10),0) = 1480
1000 4 =ROUND(1000*(1+(0.04))^(8),0) = 1369
1000 3 =ROUND(1000*(1+(0.04))^(6),0) = 1265
1000 2 =ROUND(1000*(1+(0.04))^(4),0) = 1170
1000 1 =ROUND(1000*(1+(0.04))^(2),0) = 1082

The result becomes 7967

The difference is being 153.58

I would like to know the correct Excel Function.

Thanks in advance.

Regards,




Re: Visual Studio Tools for Office FV result is being different from Pure Math Calculation ?

Cindy Meister

Questions specific to Excel should be asked in the appropriate Excel newsgroup, as listed in the "Please Read First" message at the top of this forum. In your case, you want the one dealing with Worksheet functions.