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# excel – compound interest with continuing contribution

Questions:

Looking for an excel formula that will apply compound interest and will allow me to add a continuous contribution for “x” amount of years.

i.e. \$10,000 contribution at 10% yearly interest every year. I contribute \$10,000 every year for the next 35 years. What will the account value be?

I believe the `FV()` formula would be what you’re looking for.

``````=FV(10%,35,-10000)
``````

Keep in mind, there are variations to this formula.

• `10%` assumes you only make one payment a year. If you pay 12 times a year, use `10%/12`.
• `35` is the total number of years. This doesn’t change even if you change the above.
• `-10000` is your 10k / year payment

Here’s where it can get interesting. Here are some optional arguments for you:

• Pv: Present Value. (Use if you are starting the account with > \$0 in it)
• Type: If the “payment period” is up front of the period, then place a `1` here, otherwise omit it)

Here’s an example for \$10,000 a year in monthly payments (12/year), using `1` because the payments are at the start of the month(period), not the end.

``````=FV(10%/12,35,-10000,,1)
``````