There are no financial functions in Excel to find FVIF - future value interest factor of $1 for n number of periods earning i% interest rate. But 3rd party functions such as tadFVIF help you easily find the future value factor with relative ease in Excel 2007, 2010, and 2013. tadFVIF is amongst a large number of financial functions that are found in tadXL add-in. Here me, Abraham A. will guide you through steps required for finding FVIF in Excel.
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A FVIF is an acronym that stands for future value interest factor of $1 that earns i% interest for n number of periods. Finding it manually requires discounted cash flow calculations and without a calculator it gets time consuming to find it. Finding FVIF in Excel is possible when you use 3rd party financial functions such as tadFVIF that are part of tadXL add-in for Excel 2007, 2010 and 2013. This package contains a very large number of financial functions that are not found in Excel itself but are routinely used by financial analysts.
Before we proceed to find future value interest factor in Excel, you would need the tadXL add-in which is available for download here. There are different versions of this add-in i.e. v0.5, v1.0, v2.0 and v2.5 and you would have to select one of them for installation.
The future value interest factor Excel function requires the following values as input:
=tadFVIF ( rate, nper, compounding, period, distribution )
You can download a copy of future value interest factor template here.
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