Microsoft KB Archive/97969

= Microsoft Knowledge Base =

Excel: Using Periods of Less Than One Year in FVSCHEDULE
Last reviewed: September 12, 1996

Article ID: Q97969

The information in this article applies to:


 * Microsoft Excel for Windows, versions 4.0 and 4.0a
 * Microsoft Excel for the Macintosh, version 4.0

SUMMARY
In Microsoft Excel version 4.0, you can use the FVSCHEDULE function to return the future value of a principal after applying a series of compound interest rates. To use the FVSCHEDULE function when the periods occur more than once a year, the rate for each period must be calculated first and inserted into the schedule argument.

MORE INFORMATION
The rate for every period must be entered when you use the FVSCHEDULE function. To calculate the future value of $100.00 compounded monthly with an interest rate of 3-percent for the first 4 months, 4-percent for the next 2 months, and 6-percent for the next 6 months, 12 different rates must be calculated and entered into the schedule argument. To do this, you first calculate each of the monthly rates by dividing the rates by 12. Then you enter these values as an array into the FVSCHEDULE function, as in the following example:

3%/12=.0025 4%/12=.0033 6%/12=.005

=FVSCHEDULE(100,{.0025,.0025,.0025,.0025,.0033,.0033,.005,  .005,.005,.005,.005,.005}) When you format the cell with the Currency format, this formula will return the value $104.76. You can use a cell range for the schedule argument; however, if you use rate/periods in a year (3%/12), you will receive an error message.