You're using the correct formula. Your error in your second method is to
calculate your interest as 1000 for an even number of periods, instead
of 500 for each period. The correct calculation is

500 12 =ROUND(500*(1+0.04)^12) = 801
500 11 =ROUND(500*(1+0.04)^11) = 770
500 10 =ROUND(500*(1+0.04)^10) = 740
500 9 =ROUND(500*(1+0.04)^9) = 712
500 8 =ROUND(500*(1+0.04)^8) = 684
500 7 =ROUND(500*(1+0.04)^7) = 658
500 6 =ROUND(500*(1+0.04)^6) = 633
500 5 =ROUND(500*(1+0.04)^5) = 608
500 4 =ROUND(500*(1+0.04)^4) = 585
500 3 =ROUND(500*(1+0.04)^3) = 562
500 2 =ROUND(500*(1+0.04)^2) = 541
500 1 =ROUND(500*(1+0.04)^1) = 520

For a total of 7814, the difference with the FV function being due to
your rounding.

In article ,
RushatiINDIA wrote:

Could anyone please help me to rectify the following problem.

Compounded Half-yearly ie 2
ROI 8% (=8%/2) ie 0.04
Term(Yrs) 6
Term (Months) 0
TotTerm 6 (=6*2) ie 12
Instalment 1000 (=1000/2) ie 500


If I use Excel FV Function like this
FV(0.04, 12, -500, 0, 1)

The result becomes 7813.42

But if I calculate in the following way:

1000 6 =ROUND(1000*(1+(0.04))^(12),0) = 1601
1000 5 =ROUND(1000*(1+(0.04))^(10),0) = 1480
1000 4 =ROUND(1000*(1+(0.04))^(8),0) = 1369
1000 3 =ROUND(1000*(1+(0.04))^(6),0) = 1265
1000 2 =ROUND(1000*(1+(0.04))^(4),0) = 1170
1000 1 =ROUND(1000*(1+(0.04))^(2),0) = 1082

The result becomes 7967

The difference is being 153.58

I would like to know the correct Excel Function.

Regards,