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.
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This flexibility is achieved using standard Excel features such as time value of money functionstwo-input data tables, data validation, and conditional formatting.
The snippet below shows the formulas that are in the PVIF table from above:. If you change B6 to 15, then A At this point the PVIF table is fully functional. For the final touch, we want to make sure that a user cannot enter data that is unexpected in B1: Additionally, we need to specify the Type argument to the function. Note that this does not change the formula or the result, only what appears in the cell. However, we need to clean this up a bit to make it more functional.
Conditional formatting changes the look of a cell or range when certain conditions are met.
Formatting isn’t just for making your spreadsheet pretty. Go to the Number tab and choose the Custom category.
FVIFA Calculator – Calculate Future Value Interest Factor of Annuity
Here is a small piece of the FVIF table so that you can be sure that yours is correct:. So, essentially what happens in the data table is that Excel will plug numbers into F1 and F2 and then recalculate the formula in A Since we are building these tables with Excel, we can use its built-in functions PV in this case instead of the mathematical formula.
To set the custom number format, select A10 and then right click and choose Format Cells. In A7 enter “Type” for the type of annuity. It can also add to the functionality.
Note that the underscores add spaces to the number format, and that the right paren at the fvifz is required.
For example, we might want to see how the present value changes when both the interest rate and number of periods changes. Note that if some of your rules don’t work tzble, you can always go back and edit them by choosing Manage Rules from the Conditional Formatting drop-down.
The PVIF is 0. Apply a format with a border on the right edge only, and set the font to bold. Note that we still need slightly different formulas, depending on the type of annuity as described above. To create the data table we need to select A Apply a format by clicking the Format button and apply some borders, background shading, and a bold font.
We don’t need to see the contents of E1: 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. For the second rule we fvida to apply a border to the right edge of column A, but only those rows that are supposed to be visible in the rable.
Your worksheet should now look like the one below, except for the shading in row For reference, if you change B7 to an annuity due you should get 1. Substituting 1 for FV, 3 for N, and tble. That will preserve the data, but it will be invisible because the font color is the same as the background color.
Notice that the value in A10 has changed to 0. You can see how the rules are created. The format mask to do that is 0. The tables created here are much better than the textbook tables because they overcome a couple of limitations:.
Note that if you look at the formula bar you will see that the formula is still there. That is the same value that we used for the PVIF in the original example problem above. Choose Decimal from the Allow list, between from the Tavle list, set the minimum to rable, and the maximum to 0. We only want to apply the format to the cells if they are in the “visible” part of the table that is, the column is within the range specified by the number of columns in B6.
This tells Excel to display the word “Period” regardless of the result of the formula.
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. A70 and then create this formatting rule:. The results will be placed into an array at the intersection of the appropriate row and column.
Our PVIF table will vfifa as a template for each of the other three tables. The fourth, and final, rule fvkfa underline the last visible row, but only in visible columns. Rather than creating a large table with the PV function repeated over fvifq over again, we will use Excel’s two-input data table feature. The key to creating the tables is to understand that they are all based upon the basic time value of money formulas. This leads to the following dialog box:.
Time Value of Money Tables in Excel |
The complication is because we want the table to handle both regular annuities and annuities due. Click the OK button to apply the custom number format. So, armed with the appropriate table and a way to multiply any calculator or even with pencil and paper you too can easily solve time value of money problems.
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. Once we get this working properly, we can simply copy the worksheet and then change the formula that drives the table.