FV function not working

FV function not working

In the example below it appears that the FV function is not working. When you calculate FV (future value) manually with an amortisation table the answer differs from the FV formula in Excel.


So manually for 4 years of payment of 1 000 at 10% we expect 5 105 and the FV function is giving 4 641.

The reason for this is the implied time of payment in the manual amortisation table versus the default time of payment in the FV function.

The way the manual amortisation table is set up the payments occur at the beginning of the year (in year 1 we already earn interest for a full year which implies it happened at the beginning of the year).

However the FV function has a Type option at the end which specifies whether the payment occurs at the beginning or end of period. As shown below the default (if you leave it blank as in the original formula) is at the end of period. If you want Excel to assume the payments are made at the beginning of the period you need to put a 1 in the type option.