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fvvar
Purpose
4fvvar
Future value of varying cash flow
Syntax
FutureVal = fvvar(CashFlow, Rate, IrrCFDates)
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.
IrrCFDates
(Optional) For irregular (nonperiodic) cash flows, a vector of
dates on which the cash flows occur. Enter dates as serial date
numbers or date strings. Default assumes CashFlow contains
regular (periodic) cash flows.
Description
FutureVal = fvvar(CashFlow, Rate, IrrCFDates) 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
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