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Future value (FV) is a financial concept that represents the amount of money an investment will grow to over a specified period at a given interest rate. It accounts for the effects of compounding, where interest earned is reinvested to generate additional earnings. FV is commonly used in finance to assess the potential growth of savings, investments, or cash flows over time. The formula for calculating future value is FV = PV × (1 + r)^n, where PV is the present value, r is the interest rate, and n is the number of periods.

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2h ago

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Related Questions

How do you compute present and future value of a cash flow stream?

Future Value = Value (1 + t)^n Present Value = Future Value / (1+t)^-n


Is the present value factor the exponent of the future value factor?

The present value factor is the exponent of the future value factor. this is the relationship between Present Value and Future Value.


How is the future value related to the present value of a single sum?

The present value is the reciprocal of the future value.


Is the face value of an investment the same as its future value?

No, the face value of an investment is not the same as its future value. The face value is the initial value of the investment, while the future value is the value it will have at a later date after earning interest or experiencing changes in market value.


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the current dollar value of a future amount


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Lump Sum Future Value Calculator Use this calculator to determine the future value of a lump sum.


How do you define the value of value?

I need a answer how do you know when to use future value or present value and future value of a annuity and present value of annuity Please help


What is the benefit of a Future Value calculator?

A Future value calculator can most definitely help you figure out the future value of a particular item. This can prove to be helpful when looking at buying something that you will sell in the future.


Future Value Calculator?

Future Value Calculator Use this calculator to determine the future value of an investment which can include an initial deposit and a stream of periodic deposits.


What happens to the future value of an annuity if you increase the rate?

The future value will go up.


What is future value of 1 calculated at 8 percent in 18 periods?

It depends on the period. -- If the period is 1 year, the future value is 3.996 . -- If the period is 6 months, the future value is 2.026 . -- If the period is 3 months, the future value is 1.428 . -- If the period is 2 months, the future value is 1.269 . -- If the period is 1 month, the future value is 1.196 . These are compounded values. If interest is simple, then the value after 18 years is 2.44 .


How do you find future value of share if you have present of it?

F = Future value P = Present Value i = Intrest Rate n = no. of years Therefore, the formula for future value of present amount :- F= P (1+i)n