The FV function can also be used to calculate the future value of a single lump sum payment. To do this, enter the lump sum payment amount as the present value (PV) and enter the payment amount as zero. Entering a zero as the payment amount tells Excel there is no constant stream of payments.
The FV function uses the following syntax and arguments
FV(rate,nper,pmt,pv,type)
where:
Rate is the interest rate per period.
Nper is the total number of payment periods in an annuity.
Pmt is the payment made each period; it cannot change over the life of the annuity. If pmt is omitted, you must include the pv argument.
Pv is the present value, or the lump-sum amount that a series of future payments is worth right now. If pv is omitted, it is assumed to be 0 (zero), and you must include the pmt argument.
Type is the number 0 or 1 and indicates when payments are due. If type is omitted, it is assumed to be 0.
For example, suppose that you will invest $1,000 today at an interest rate
of 12 percent, and you would like to know what the investment will be worth
at the end of five years.
Nper is the total number of payment periods in an annuity.
Pmt is the payment made each period; it cannot change over the life of the annuity. If pmt is omitted, you must include the pv argument.
Pv is the present value, or the lump-sum amount that a series of future payments is worth right now. If pv is omitted, it is assumed to be 0 (zero), and you must include the pmt argument.
Type is the number 0 or 1 and indicates when payments are due. If type is omitted, it is assumed to be 0.
The FV formula is entered as follows:
=FV(12%,5,0,-1000,0)