*! version 1 jan2013
help fvfix

Title

fvfix -- Returns the future value of a series of equal payments (cash flows)

Syntax

fvfix
, cf(#) nper(#)
frequency(timeunit)
rate(#)
[ options ]

Main
cf(#) Value of the constant cash flows (positive number)

nper(#) Number of payment periods (positive integer)

frequency:(timeunit) Time unit of payments (m, q, h, y)

rate(#) Nominal annual interest rate (in decimal form)

Options
presentvalue(#) Starting balance other than cf(#) (positive number)

due(#) When payments are due or made: 0 = end of period (default), or 1 = beginning of period

result(mymatrix) Set the capitalized cash flows' schedule matrix name

timeunit definition

m monthly payments

q quarterly payments

h halfyearly payments

y yearly payments

Description

fvfix Returns the future value of a series of equal payments (based on a compounded constant interest rate). fvfix generates
a three column matrix (rows = nper) containing the entire schedule of capitalized cash flows
distinguishing between: period number, capitalization factor and cash flows.

Options

cf(#) Value of the constant cash flows.

nper(#) Number of payment periods.
For example, if you want the future value of five-year monthly cash flows, it will have 5*12 = 60 periods. The formula nper(60).

frequency:(timeunit) Time unit of payments (m, q, h, y).
Used to convert the annual interest rate into a periodic rate.

rate(#) Nominal annual interest rate (in decimal form). i.e. an annual 5.24% interest rate should be written 0.0524.

presentvalue(#) Starting balance other than cf(#), default is 0.

due(#) When payments are due or made: 0 = end of period (default), or 1 = beginning of period.

result(mymatrix) Set the capitalized cash flows' schedule matrix name saved in results, default is matfvcf

Examples

. fvfix, cf(10000) nper(60) frequency(m) rate(.1125) due(1)

. fvfix, cf(1500) nper(5) frequency(y) rate(.125) res(cf1)

. mat list r(cf1)

Saved results

fvfix saves the following in r():

Scalars

r(cf) cash flow value

r(nper) total number of payment periods

r(freq) number of payment within a year

r(iy) annual interest rate

r(due) due value

r(presentval) Starting balance value

r(FV) future value of constant cash flows

Matrices

r(matfvcf) schedule of capitalized cash flows

Author

Maximo Sangiacomo
Email: msangia@hotmail.com