FVIF is the future value interest factor of $1 that earns i% interest rate for n number of periods. Here me Abraham A. will provide you with a study guide to explain and illustrate future value interest factor of $1.
FVIF is an acronym for future value interest factor of $1 that earns an i% interest rate for n number of periods. The FVIF may be thought of as interest earned on a loan worth $1 on which the borrow agrees to pay a compound interest for a number of periods. The interest may be earned on different frequencies that are referred to as compounding frequencies of interest which range from annual compounding all the way down to daily compounding. The maximum interest may be earned when interest is compounded continuously, the compounding frequency of interets may exceed that of a year such as biennial and triennial compounding of interest. I present you a FVIF document as a Word file that explains the FVIF giving you the various formulas that are used in FVIF calculation. The FVIF calculation is demonstrated with example calculation taken from real life money lending situations.
Excel FVIF function in tadXL v2.5
Using tadXL functions such as tadFVIF finding future value interest factor in Excel 2007, 2010 and 2013 becomes really easy. Let us now briefly look at this financial functions in tadXL to find FVIF using Excel:
- tadFVIF ( rate, nper, compounding, period, distribution )