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Future Value Function in Excel & Compound vs. Simple Interest explained by Chris Menard

This video covers the Future Value function in Excel and Compound Interest vs. Simple interest. The Future Value Function in Excel, known as the FV Function, gives you the future value of an investment. The FV function has five arguments. Two of the five arguments are optional. This video also goes into detail comparing simple interest vs. compound interest. Compound interest gives you interest on your interest. Simple interest does not give you interest on your interest. If you invest $10K for 25 years at a 10% interest rate, you will have $108,347 with compound interest (98,247 interest). With simple interest, you will only have $35,000. That is a difference of $73,347. Future Value Function Arguments rate - The interest rate per period. If 12 months, divide the interest rate by 12. nper - The total number of payment periods. If 12 months, multiple the periods by 12. pmt - The payment made each period. Must be entered as a negative number. pv - [optional] The present value of future payments. If omitted, assumed to be zero. Must be entered as a negative number. type - [optional] When payments are due. 0 = end of period, 1 = beginning of period. The default is 0. Smart Asset Investment Calculator https://smartasset.com/investing/inve... #personalfinance #msexcel #compoundinterest #futurevalue #futurevaluefunction #smartasset #excel #microsoftexcel #investing Chris Menard's Training Website: https://chrismenardtraining.com Upcoming Speaking Events: DeKalb Chapter of CPAs - Part of the Georgia Society of CPAs. Event is Excel Analysis and PivotTables by Chris Menard https://chrismenardtraining.com/post/... And make sure you subscribe to my channel! - EQUIPMENT USED -------------------------------- ○ My camera – https://amzn.to/3vdgF5E ○ Microphone - https://amzn.to/3gphDXh ○ Camera tripod – https://amzn.to/3veN6Rg ○ Studio lights - https://amzn.to/3vaxyy5 ○ Dual monitor mount stand - https://amzn.to/3vbZSjJ ○ Web camera – https://amzn.to/2Tg75Sn ○ Shock mount - https://amzn.to/3g96FGj ○ Boom Arm - https://amzn.to/3g8cNi6 - SOFTWARE USED -------------------------------- ○ Screen recording – Camtasia – https://chrismenardtraining.com/camtasia ○ Screenshots – Snagit – https://chrismenardtraining.com/snagit ○ YouTube keyword search – TubeBuddy – https://www.tubebuddy.com/chrismenard DISCLAIMER: Links included in this description might be affiliate links. If you purchase a product or service with the links I provide, I may receive a small commission. There is no additional charge to you! Thank you for supporting my channel, so I can continue to provide you with free content each week!