Main Content

fvvar

Future value of varying cash flow

Description

example

FutureVal = fvvar(CashFlow,Rate) returns the future value of a varying cash flow.

example

FutureVal = fvvar(___,CFDates) specifies options using an optional argument in addition to the input arguments in the previous syntax.

Examples

collapse all

This cash flow represents the yearly income from an initial investment of $10,000. The annual interest rate is 2%.

  • Year 1 — $2000

  • Year 2 — $1500

  • Year 3 — $3000

  • Year 4 — $3800

  • Year 5 — $5000

For the future value of this regular (periodic) cash flow:

FutureVal = fvvar([-10000 2000 1500 3000 3800 5000], 0.02)
FutureVal = 4.7131e+03

An investment of $10,000 returns this irregular cash flow. The original investment and its date are included. The periodic interest rate is 3%.

  • -$1000 — January 12, 2000

  • $2500 — February 14, 2001

  • $2000 — March 3, 2001

  • $3000 — June 14, 2001

  • $4000 — December 1, 2001

To calculate the future value of this irregular (nonperiodic) cash flow:

CashFlow = [-10000, 2500, 2000, 3000, 4000];

CFDates = ['01/12/2000'
            '02/14/2001'
            '03/03/2001'
            '06/14/2001'
            '12/01/2001'];

FutureVal = fvvar(CashFlow, 0.03, CFDates)
FutureVal = 1.0731e+03

Input Arguments

collapse all

Varying cash flows, specified as a vector.

Note

You must include the initial investment as the initial cash flow value (a negative number).

.

Data Types: double

Periodic interest rate, specified as a scalar numeric decimal.

Data Types: double

(Optional) Dates on which the cash flows occur, specified as a cell array of date character vectors, a vector of serial date numbers, or a datetime array.

Note

Use CFDates for irregular (nonperiodic) cash flows.

Data Types: double | char | datetime

Output Arguments

collapse all

Future value of a varying cash flow, returned as a scalar numeric.

References

[1] Jan Mayle. Standard Securities Calculation Methods. Securities Industry Assn, Volumes I-II, 3rd edition, 1994

Introduced before R2006a