# Future Value (FV)

1. ## Future Value (FV)

hello community

can someone kindly explain to me why my FV is in negative form ?

example:

interest rate = 2.60%
No of years = 6
Annual investment = 20000 (fixed amount)

when i used the FV(), my answer is in (128,075.73) - red ?

thanks for the explanation
--
oldLearner57

2. ## RE: Future Value (FV)

Hi tikchye. If you make your \$20,000 annual investment negative (it is an
outflow and should be negative) your Future Value will then be positive. HTH
--
Sincerely, Michael Colvin

"tikchye_oldLearner57" wrote:

> hello community
>
> can someone kindly explain to me why my FV is in negative form ?
>
> example:
>
> interest rate = 2.60%
> No of years = 6
> Annual investment = 20000 (fixed amount)
>
> when i used the FV(), my answer is in (128,075.73) - red ?
>
> thanks for the explanation
> --
> oldLearner57

3. ## Re: Future Value (FV)

All Excel financial function use the same convention: money either flows in
or out; out flow is considered negative. Thus if you use PMT to compute a
loan payment and make the loan amount positive, PMT will be negative because
the loan came in to you while the payments go out from you. The same formula
with a negative pv value (a deposit in an annuity) will give positive
payments (money paid by bank to you).
To get a positive FV in your case make the investment negative (it flows
from you) or simply use =-FV(parms)
best wishes
--
Bernard V Liengme
www.stfx.ca/people/bliengme
remove caps from email

"tikchye_oldLearner57" <tikchyeoldLearner57@discussions.microsoft.com> wrote
in message news:21FE906D-1EC6-4491-BB1A-11BB0682D345@microsoft.com...
> hello community
>
> can someone kindly explain to me why my FV is in negative form ?
>
> example:
>
> interest rate = 2.60%
> No of years = 6
> Annual investment = 20000 (fixed amount)
>
> when i used the FV(), my answer is in (128,075.73) - red ?
>
> thanks for the explanation
> --
> oldLearner57

4. ## Re: Future Value (FV)

tikchye_oldLearner57 wrote:
> hello community
>
> can someone kindly explain to me why my FV is in negative form ?
>
> example:
>
> interest rate = 2.60%
> No of years = 6
> Annual investment = 20000 (fixed amount)
>
> when i used the FV(), my answer is in (128,075.73) - red ?
>
> thanks for the explanation
> --
> oldLearner57

Hi,

I belive that your payments to the investment should be negative.

>From Help:

For all the arguments, cash you pay out, such as deposits to savings,
is represented by negative numbers; cash you receive, such as dividend
checks, is represented by positive numbers.

Regards,
Bondi

5. ## Re: Future Value (FV)

thanks to Michael / Bernard Liengme / Bondi > now I understand

best regards
thanks community
--
oldLearner57

"Bondi" wrote:

>
> tikchye_oldLearner57 wrote:
> > hello community
> >
> > can someone kindly explain to me why my FV is in negative form ?
> >
> > example:
> >
> > interest rate = 2.60%
> > No of years = 6
> > Annual investment = 20000 (fixed amount)
> >
> > when i used the FV(), my answer is in (128,075.73) - red ?
> >
> > thanks for the explanation
> > --
> > oldLearner57

>
> Hi,
>
> I belive that your payments to the investment should be negative.
>
> >From Help:

> For all the arguments, cash you pay out, such as deposits to savings,
> is represented by negative numbers; cash you receive, such as dividend
> checks, is represented by positive numbers.
>
>
> Regards,
> Bondi
>
>

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