FV already assumes reinvestment of the interest earned. Ex:
=FV(10%,2,-100,,1) returns $231. The initial investment is $100. A year
later you've earned $10 and invested another $100 so you'd have $210. That
amount (including the first year's reinvested interest) earns $21 in the
second year, leaving you with $231. If the FV did not assume reinvestment,
you'd only get $230, losing the year 2 interest on the year 1 earnings.

"puertoricanninja" wrote:

i have no trouble with the annuity fv and pv, but how do i include the
reinvestments?

"bpeltzer" wrote:

Use FV to calculate the future value of all the investments and
reinvestments, then divide by (1+9%)^n (where n is the number of years) to
get the PV. (For that last part, you could also use the PV function with 0
payments and FV set to the results from part 1).

"puertoricanninja" wrote:

what is the right formula to calculate the pv of an annuity w/ reinvested
interest? Ex:
i receive 10,000 cash / month for 7 years;
i invest all cash @ an interest rate of 5% / year;
i reinvest all the interest;
the discount rate is 9%.

i want the pv of the cash received and reinvested interest.