# Microsoft KB Archive/102227

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Mac Works 3.0: How to Adjust the Period of Financial Functions

3.0

MACINTOSH

====================================================================== 3.00 MACINTOSH kbother

 The information in this article applies to: - Microsoft Works for the Macintosh, version 3.0

# SUMMARY

The compounded period used in calculating financial functions can be altered by changing the number of periods over which the function is calculated. For example, a four-year loan compounded monthly will have 48 periods (four years times 12 months). The rate should be entered as the rate for each period.

To calculate a 9-percent annual interest rate, compounded monthly, enter the monthly interest rate, which in this example is .75 percent (9 percent divided by 12 months).

As an example, when calculating the future value of \$10,000 four years from now at an annual interest rate of 9 percent, the following results are obtained:

Compounded Period Formula Result ————————————————————

yearly =FV(9%,4,0,-10000) \$14,115.82 quarterly =FV(9%/4,44,0,-10000) \$14,276.21 monthly =FV(9%/12,412,0,-10000) \$14,314 daily =FV(9%/365,4*365,0,-10000) \$14,332.66