stefangs Posted February 26, 2015 Share Posted February 26, 2015 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 Link to comment Share on other sites More sharing options...
comment Posted February 26, 2015 Share Posted February 26, 2015 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? Link to comment Share on other sites More sharing options...
stefangs Posted March 1, 2015 Author Share Posted March 1, 2015 Yep, crazy input. I forgot to divide the rate by 100. I updated the calc to do that for me. Thanks, Stefan Link to comment Share on other sites More sharing options...
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