VA

Syntax VA (i,n)
Location Toolfin

The function VA returns the value of (1+i)-n = 1/MT(i,n) where i and n can be any floating point numbers (see MT for error handling).

Example

VA allows you to find out about base capital which will grow to a certain higher (i>0) capital at the interest rate i over n periods. Assume that you want to buy an expensive car for $80000 in two years and your investment returns an annual gain of 10% (not bad), then you need to invest 80000 * VA(1/10, 2) = 66115.7

CROSS-REFERENCE

You can check the result of the above example with: 66115.7 * MT(1/10,2) = 80000.

See also VFR, VAR, TCA, TNC, TEE, RAE, RAFE.