Instructions

Understand the concept of future value. Future value is a Time Value of Money calculation. Future value answers questions such as, If I invest a certain amount of money each month, given the market interest rate for that type of investment, what will my nest egg be worth when I retire? In other words, the future value calculation measures the power of compound interest.

Observe the screen tip that pops up as soon as you type your opening parenthesis. It looks like this: (rate, nper, pmt, [pv], [type]). This screen tip design helps you know which values to input.

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