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fvvar

Future value of varying cash flow

Syntax

FutureVal = fvvar(CashFlow, Rate, CFDates)

Arguments

CashFlow

A vector of varying cash flows. Include the initial investment as the initial cash flow value (a negative number).

Rate

Periodic interest rate. Enter as a decimal fraction.

CFDates

(Optional) For irregular (nonperiodic) cash flows, a vector of dates on which the cash flows occur. Enter dates as serial date numbers, date character vectors, or datetime arrays. Default assumes CashFlow contains regular (periodic) cash flows.

Description

FutureVal = fvvar(CashFlow, Rate, CFDates) returns the future value of a varying cash flow.

Examples

This cash flow represents the yearly income from an initial investment of $10,000. The annual interest rate is 8%.

Year 1

$2000

Year 2

$1500

Year 3

$3000

Year 4

$3800

Year 5

$5000

For the future value of this regular (periodic) cash flow

FutureVal = fvvar([-10000 2000 1500 3000 3800 5000], 0.08)

returns

FutureVal =

            2520.47

An investment of $10,000 returns this irregular cash flow. The original investment and its date are included. The periodic interest rate is 9%.

Cash Flow

Dates

($10000)

January 12, 2000

$2500

February 14, 2001

$2000

March 3, 2001

$3000

June 14, 2001

$4000

December 1, 2001

To calculate the future value of this irregular (nonperiodic) cash flow

CashFlow = [-10000, 2500, 2000, 3000, 4000];

CFDates = ['01/12/2000'
            '02/14/2001'
            '03/03/2001'
            '06/14/2001'
            '12/01/2001'];

FutureVal = fvvar(CashFlow, 0.09, CFDates)

returns

FutureVal =

            170.66

Related Examples

See Also

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Introduced before R2006a

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