John said:

For some reason that I dont understand, but which Ronald will no doubt

explain, the microsoft FV function assumes the first payment is made at

the end of the 1st month and therefore doesnt seem to take the interest

due on the last months payment into account.

The key lies in the "type" argument. See below the description of the

FV function provided with Linux's "gnumeric". I don't use MS excel, but

the description is likely to be compatible.

[I never dreamed I would be giving advice on spreadsheets, especially to

an old (very old) hand like JV, because I take the view that spreadsheets

are an invention of the devil].

Synopsis

FV(rate,term,pmt,pv,type)

Description

FV computes the future value of an investment. This is based on periodic,

constant payments and a constant interest rate. The interest rate per period

is @rate, @term is the number of periods in an annuity, @pmt is the payment

made each period, @pv is the present value and @type is when the payment is

made. If @type = 1 then the payment is made at the begining of the period.

If @type = 0 it is made at the end of each period.