interest calculation

[stefangs]

I'd like to calculate the future value of an amount by an interest rate. Wikipedia defines this function (as future value of a present sum) here:

 

https://en.wikipedia.org/wiki/Time_value_of_money

 

When I do this in FM, I get a crazy result, so I obviously didn't properly transcribe it.

 

I have this:

present_value * (1 + interest_rate) ^ periods

 

Thanks,

Stefan

 

 

[comment]

The formula you show us is the correct one for calculating the future value of an investment bearing periodically compounded interest.

 

If you are getting "a crazy result", then most likely it is due to "a crazy input" - perhaps your rate is not a fraction?

[stefangs]

Yep, crazy input. I forgot to divide the rate by 100. I updated the calc to do that for me.

 

Thanks,

Stefan