Apple iWork '09 - Manual (Page 120)

FV
The FV function returns the future value of an investment based on a series of regular
periodic cash flows (payments of a constant amount and all cash flows at constant
intervals) and a fixed interest rate.
FV(periodic-rate, num-periods, payment, present-value, when-due)
 periodic-rate: The interest rate per period. periodic-rate is a number value and is
either entered as a decimal (for example, 0.08) or with a percent sign (for example, 8%).
 num-periods: The number of periods. num-periods is a number value and must be
greater than or equal to 0.
 payment: The payment made or amount received each period. payment is a
number value. At each period, an amount received is a positive amount and an
amount invested is a negative amount. For example, it could be a monthly loan
payment (negative) or the periodic payment received on an annuity (positive).
 present-value: An optional argument that specifies the value of the initial
investment, or the amount of the loan or annuity. present-value is a number value.
At time 0, an amount received is a positive amount and an amount invested is a
negative amount. For example, it could be an amount borrowed (positive) or the
initial payment made on an annuity contract (negative).
 when-due: An optional argument that specifies whether payments are due at the
beginning or end of each period. Most mortgage and other loans require the first
payment at the end of the first period (0), which is the default. Most lease and rent
payments, and some other types of payments, are due at the beginning of each
period (1).
end (0 or omitted): Payments are due at the end of each period.
beginning (1): Payments are due at the beginning of each period.
Usage Notes
If  payment is specified and there is no initial investment, present-value may be omitted.
Example 1
Assume you are planning for your daughter’s college education. She has just turned 3 and you
expect she will begin college in 15 years. You have $50,000 to set aside in a savings account today
and can add $200 to the account at the end of each month. Over the next 15 years, the savings
account is expected to earn an annual interest rate of 4.5%, and pays interest monthly.
Using the FV function, you can determine the expected value of this savings account at the time your
daughter begins college. Based on the assumptions given, it would be $149,553.00.
periodic-rate num-periods payment present-value when-due
=FV(B2, C2, D2,
E2, F2) =0.045/12 =15*12 -200 -50000 1
120 Chapter 6 Financial Functions