Monday, July 03, 2006

Dicom as a Financial Calculator: Net future value of a one time investment

Function Description

Following Dicom financial function calculates net future value of a one time investment:

Nfv1( rate[pct], nper, pval[USD] )

  • In the above function syntax, units in square brackets [] are optional.
  • rate is interest rate. If the interest rate is 5%, it can be written as either .05 or 5 pct
  • nper is the number of period to be invested. It is a value without unit. Note that interest rate is based on this period.
  • pval is the present value of invested amount. It can be unit-less or with currency unit such as USD.

Calculate net future value of 100 US dollars invested for a period of 10 years at an interest rate of 4% per year.

Using pct for percentage:
Nfv1( 4 pct, 10, 100 USD ) = 148.024428491834 USD.

Using fraction for percentage:
Nfv1( .04, 10, 100 USD ) = 148.024428491834 USD.

Without using currency unit (note that the answer is unit-less):
Nfv1( .04, 10, 100 ) = 148.024428491834

Dicom unit conversion calculator is available here for free download.