Fvschedule Function

Purpose

Return value

Syntax

=FVSCHEDULE(principal,schedule)

• principal - The initial investment sum.
• schedule - Schedule of interest rates, provided as range or array.

Using the FVSCHEDULE function

The FVSCHEDULE function calculates the future value of a single sum based on a schedule of interest rates. The interest rates can vary in each period. As such, FVSCHEDULE can be used to find the future value of an investment with a variable or adjustable rate.

By contrast, the FV function can also be used to find the future value of a sum based on a given interest rate, it can’t handle different rates in different periods.

Example

In the example shown, an initial sum of $1000 is invested for 4 years. In each year, the rate is different as shown below:

In the example, the rates are entered in the range C8:C11. The formula in F5 is:

=FVSCHEDULE(C5,C8:C11)

FVSCHEDULE returns $1,147.26, when currency number format is applied.

Schedule

The values in schedule can be provided as a range of cells (per the example) or an array constant. For example, the formula below provides the principal as C5, but rates are hardcoded into an array constant :

=FVSCHEDULE(C5,{0.02;0.03;0.04;0.05})

The result is the same as above, $1,147.26.

Notes

• Blank cells in the schedule are treated as zeros
• FVSCHEDULE will return #VALUE if any values are non-numeric

Purpose

Return value

Syntax

=INTRATE(settlement,maturity,investment,redemption,[basis])

• settlement - Settlement date of the security.
• maturity - Maturity date of the security.
• investment - The amount originally invested.
• redemption - The amount received at maturity.
• basis - [optional] Day count basis (see below, default =0).

Using the INTRATE function

The INTRATE function calculates the annual effective interest rate for a “fully invested” security. A fully invested security does not pay periodic interest before maturity. The interest income is the difference between the redemption value of the security and the original investment.

Example

In the example shown, we want to find the effective annual interest rate for a bond with a price of $895.00 and a redemption value of $1000. The settlement date is 6-Jul-2017 and the maturity date is 15-Jan-2020. There are no periodic interest payments, and the day count basis is US (NASD) 30/360. The formula in F5 is:

=INTRATE(C7,C8,C5,C9,C10)

With these inputs, the INTRATE function returns 4.65%, with percentage number format applied.

Entering dates

In Excel, dates are serial numbers . Generally, the best way to enter valid dates is to use cell references, as shown in the example. To enter valid dates directly inside a function, you can use the DATE function . To illustrate, the formula below has all values hardcoded, and the DATE function is used to supply each of the two required dates:

=INTRATE(DATE(2017,7,6),DATE(2020,1,15),895,1000,0)

Basis

The basis argument controls how days are counted. The INTRATE function allows 5 options (0-4) and defaults to zero, which specifies US 30/360 basis . This article on wikipedia provides a detailed explanation of available conventions.

Notes

• In Excel, dates are serial numbers .
• All dates, and basis , are truncated to integers.
• If dates are invalid (i.e. not actually dates) INTRATE returns #VALUE!
• INTRATE returns #NUM when: settlement >= maturity investment <= 0 or redemption <= 0 Basis is out-of-range