# Future Value of $1 Table Creator

## Calculator Use

FVIF calculator to create a printable compound interest table or a future value of $1 table. Future value is calculated from the formula

where FV is the future value, PV is the present value = $1, i is the interest rate in decimal form and n is the period number. PV is the Present Value (Principal amount of money = $1) to be invested at an Interest Rate per period for n Number of Time Periods to grow to FV.

You can then look up FV in the table and use this value as a factor in calculating the future value of an investment amount.

Since PV = 1 the FV is the Future Value Interest Factor (FVIF).

**Future value table example with annual compounding:** You want to invest $10,000 at an annual interest rate of 5.25% that compounds annually for 15 years. What will be the value of your account at the end of 15 years?

- Create a table that includes i = 5.25% and n = 15
- Look up FV to find 2.15443
- Use it as a factor to calculate $10,000 * 2.15443 = $21,544.30 which is the value of your investment, future value, after 15 years.

**Future value table example with monthly compounding:** You want to invest $10,000 at an annual interest rate of 5.25% that compounds monthly for 15 years. What will be the value of your account at the end of 15 years?

In this example you must convert periods and the interest rate to months since that is the base period for compounding. 15 years * 12 = 180 months and 5.25%/year divided by 12 = 0.4375%/month.

- Create a table that includes i = 0.4375% and n = 180
- Look up FV to find 2.19412
- Use it as a factor to calculate $10,000 * 2.19412 = $21,941.20 which is the value of your investment, future value, after 15 years. Since compounding is occurring more often the ending value is greater than the future value of the annually compounding example.