fvvar

Future value of varying cash flow

Syntax

FutureVal = fvvar(CashFlow,Rate)

FutureVal = fvvar(___,CFDates)

Description

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

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

Examples

Calculate Future Value of Varying Cash Flows

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 = [datetime(2000,1,12)
           datetime(2001,2,14)
           datetime(2001,3,3)
           datetime(2001,6,14)
           datetime(2001,12,1)];

FutureVal = fvvar(CashFlow, 0.03, CFDates)

FutureVal = 
1.0731e+03

Input Arguments

CashFlow — Varying cash flows

vector

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

Rate — Periodic Interest rate

scalar numeric decimal

Periodic interest rate, specified as a scalar numeric decimal.

Data Types: double

CFDates — Dates on which the cash flows occur

assumes CashFlow contains regular (periodic) cash flows (default) | datetime array | string array | date character vector | serial date number

(Optional) Dates on which the cash flows occur, specified as a vector using a datetime array, string array, or date character vectors.

Note

Use CFDates for irregular (nonperiodic) cash flows.

To support existing code, fvvar also accepts serial date numbers as inputs, but they are not recommended.

Data Types: char | string | datetime

Output Arguments

FutureVal — Future value of a varying cash flow

scalar numeric

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

Version History

Introduced before R2006a

R2022b: Serial date numbers not recommended

Although fvvar supports serial date numbers, datetime values are recommended instead. The datetime data type provides flexible date and time formats, storage out to nanosecond precision, and properties to account for time zones and daylight saving time.

To convert serial date numbers or text to datetime values, use the datetime function. For example:

t = datetime(738427.656845093,"ConvertFrom","datenum");
y = year(t)

y =

        2021

There are no plans to remove support for serial date number inputs.