Financial Toolbox

fvvar

Future value of varying cash flow

Syntax

• FutureVal = fvvar(CashFlow, Rate, IrrCFDates)
  

Arguments

CashFlow	A vector of varying cash flows. Include the initial investment as the initial cash flow value (a negative number).
Rate	Periodic interest rate. Enter as a decimal fraction.
IrrCFDates	(Optional) For irregular (nonperiodic) cash flows, a vector of dates on which the cash flows occur. Enter dates as serial date numbers or date strings. Default assumes CashFlow contains regular (periodic) cash flows.

Description

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

Examples

This cash flow represents the yearly income from an initial investment of $10,000. The annual interest rate is 8%.

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], 0.08)
  

returns

• FutureVal =
  
              2520.47
  

An investment of $10,000 returns this irregular cash flow. The original investment and its date are included. The periodic interest rate is 9%.

Cash flow	Dates
($10000)	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];
  
  IrrCFDates = ['01/12/2000'
                '02/14/2001'
                '03/03/2001'
                '06/14/2001'
                '12/01/2001'];
  
  FutureVal = fvvar(CashFlow, 0.09, IrrCFDates)
  

returns

• FutureVal =
  
              170.66
  

See Also

fvfix, irr, payuni, pvfix, pvvar

fvfix

fwd2zero