Читать книгу Fundamentals of Financial Instruments - Sunil K. Parameswaran - Страница 128

To compute the future value using Excel, we need to use the FV function. The parameters are:

 Rate: Rate is the periodic interest rate.

 Nper: Nper is the number of periods.

 Pmt: Pmt stands for the periodic payment, and is not applicable in this case because there are no periodic cash flows. Thus, we can either put a zero, or an extra comma in lieu.

 Pv: Pv stands for the present value, or the initial investment. We input it with a negative sign in order to ensure that the answer is positive. In many Excel functions, cash flows in one direction are positive while those in the opposite direction are negative. Thus, if the investment is positive, the subsequent inflow is negative, and vice versa. In this case, if we specify a negative number for the present value, we get the future value with a positive sign. If, however, the present value is given with a positive sign, the future value, although it would have the same magnitude, would have a negative sign.

 Type: This is a binary variable, which is either 0 or 1. It is not required at this stage, and we can just leave it blank.