In this scenario, the Loan amount or investment amount (PV) is available, the total number of periods in a year is available (nper), and Periodic payments/repayments (pmt) are also available. With the help of the RATE function, the computation takes place. Let’s understand this with an...
The best use of the future value formula is determining the value of investments after a period. Corporate Finance uses the Future Value formula to make effective decisions for valuing capital expenses. You can calculate the number of installments on a loan amount You can calculate the savings ne...