My task: Create a table:
Calculate what the revenues of e-trading will be after five years at 15 percent interest rate if we now have 15 000 EUR. Use the FV function from the Financial Group in Excel.
My resolution: =FV( 15%; 5; 0; -15000).
My question: Is it correct?
I know the task lacks information whether the interest rate is per month or per year. I calculate it as 'per year'. My question is orientated more on the usage of the FV function. I, for example, do not understand why '-15000' and not '15000'. Also why the third parameter has to be 0? Maybe I do it wrong.
Please help me solve it! Thanks in advance.