Table 1: F uture Value Interest F actor (F. V. IF.) ($1 at r% for n periods). F. V .. Table 3: Future Value of an Annuity Interest Factor (FVIFA) ($1 per period at r%. n \ r. 1%. 2%. 3%. 4%. 5%. 6%. 7%. 8%. 9%. 10%. 11%. 12%. 13%. 14%. 15%. 16%. 17%. 1. This tutorial demonstrates how to create the PVIF, FVIF, PVIFA, and FVIFA tables using Excel. I use conditional formatting, custom number formatting, data.
|Published (Last):||7 February 2010|
|PDF File Size:||5.13 Mb|
|ePub File Size:||6.77 Mb|
|Price:||Free* [*Free Regsitration Required]|
That will preserve the data, but it will be invisible because the font color is the same as the background color.
Select the entire table A This rule checks to see that it is in column A and that the row number is in the visible range. Note that the underscores add spaces to the number format, and that the tabl paren at the end is required. In this case, the table provides a factor that is multiplied by a future value of a lump sum cash flow in order to obtain its present value.
In fact, it just confuses things. It works by substituting the a value from the top row and left column into the cells specified F1 and F2. In B7 we will enter another data validation rule.
This tells Excel dvifa display the word “Period” regardless of the result of the formula. Click here to learn more. Are you a student? This is where you tell Excel that cell F1 is where to plug in the numbers from the top row of the table the interest rates and that F2 is where to plug in the numbers from the left column the period numbers. Virtually every finance textbook has, at the back, a series of tables that contain multipliers that can be used to easily calculate present or future values without the need for a financial calculator.
Note that we still need slightly different formulas, depending on the type of annuity as described above. To test it, change B6 to, say, 10 and make sure that only A Here is a small piece of the FVIF table so that you can be sure that tablle is correct:. This is the area specifically, F1 and F2 where Excel will substitute the values from the top row and tagle column to get the numbers to paste into the table.
Apply a border to the bottom using the Format ttable. The complication txble because we want the table to handle both regular annuities and annuities due.
Also, we don’t need to see the number in A The results will be placed into an array at the intersection of the appropriate row and column.
Time Value of Money Tables in Excel |
We want to create rules that are based on formulas, so choose the last item in the Rule Type list Use a formula to determine which cells to format. Again, this is a two-input data table.
This will provide the user with a drop-down list from which they can tzble the type of annuity.
For example, we don’t want them to enter a negative interest rate in B1. So, we will apply a custom tabel to display the text “Period” instead of the result of the formula. A70 and then create this formatting rule:. The tables created here are much better than the textbook tables because they overcome a couple of limitations:. Choose Decimal from the Allow list, between tabble the Data list, set the minimum to 0, and the maximum to 0. So, the rule will be:. Conditional formatting changes the look of a cell or range when certain conditions are met.
If you change B6 to 15, then A How much do you need to deposit today in order to achieve your goal? But what happens if the interest rate is 3. The rest of the table is filled in automatically when we use the Data Fvida command. At this point the PVIF table is fully functional. If you choose, you can set an input message that will popup when the cell is selected, and an error message that is displayed if the tvifa enters a number outside of the allowable range.
FVIFA Calculator – Calculate Future Value Interest Factor of Annuity
This time we want to set the Allow to List and then the Souce to “Regular, Due” do not type the quotes, but do include the comma. For regular annuities this argument is 0, but for annuities due it is 1. Let’s set one more custom number format, this time in A To set the custom number format, select A10 and then right click and choose Format Cells.
Let’s take care of a couple of simple items first. Be sure to click the Create a Copy box at the bottom of the dialog box. They must be formulas that will evaluate to either True or False.
For example, we might want to see how the present value changes when both the interest rate and number of periods changes. This allows us to enter a tabe once, and then it will automatically populate the table based on values in the left column and top row of the table.
Table recalculation can be slow for large tables or complicated formulas, so one of Excel’s calculation options is to Automatic Except for Data Tables. We don’t need to use that setting here, but you should be aware that it exists.
That is the same as the PVIF that we originally pulled from the table.
Not too bad, but the tables that we create here can easily have the exact interest rate that you need. Time value of money tables are very easy to use because they provide a “factor” that is multiplied by a present value, future value, or annuity payment to find the answer.
Notice that the value in A10 has changed to 0. Select B1 and then click the Data Validation button on the Data tabble. Since we are building these tables with Excel, we can use its built-in functions PV in this case instead of the mathematical formula.
We need to add 1 to the number of columns because we are including column A, which is not a part of the 30 columns specified. You will now see the following dialog box:. We can do this by applying some data validation rules to those cells.