Remember to use the same units for the number of periods and the interest rate. In most cases, this value will be in years or months. This is the number of periods in the future value calculation. If you are planning for monthly payments, then you should divide this number by 12 (this is a good approximation, but your answers might be slightly off as the calculator now assumes monthly instead of yearly compounding). Always use a positive value for this number. This is the interest rate (either that you will pay, or you will receive if you are investing). Let’s run through the variables in the future value function, one-by-one: Rate Once you type in =FV(, Google Sheets knows you are trying to calculate a future value function and guides you right along each step of the way: To use the future value function, simply type =FV(into any cell of the spreadsheet. Google has online spreadsheet software with most of the functionality of Microsoft Excel, including the future value function. The future value function is available on most spreadsheet programs, including Microsoft Excel and Google Sheets. You can build complicated spreadsheets or use fancy software to more precisely do these types of calculations, but the simple future value function can get you a ballpark answer. It is a quick way to run basic calculations about compound interest. Calculations using the future value functionĪnyone who wants to do their own investing should be familiar with the future value function. Leave the nitty-gritty of learning how to hand-calculate these functions to the finance majors. If you can use a calculator, then you can calculate these important financial functions. However, a cursory ability to “run the numbers” is critical to setting and meeting your financial goals, especially if you don’t want to use the services of a financial advisor. There are even medical calculator websites and apps that help you do basic calculations that we encounter in day-to-day medicine. From acid-base calculations in general chemistry to memorizing Winter’s Formula for USMLE Step 1 and the clinical wards, many physicians dread math. Physicians are notoriously averse to math.
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