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Future value

Future value measures what money is worth at a specified time in the future assuming a certain interest rate. This is used in time value of money calculations.

see also
  • Hyperbolic discounting
  • Quantity theory of money
  • Discount: net present value
  • Ordinary Annuity
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    1 To determine future value (FV) without compounding:   
    2 Present value PV    dollars   
    3 time in years t    years   
    4 per annum interest rate r     
    5        
    6 future value FV    dollars   
    7        
    8 To determine future value when interest is compounded   
    9 Present value PV    dollars   
    10 number of compounding periods n    periods   
    11 interest rate i     
    12        
    13 future value FV    dollars   
    14        
    15 Future Value of an annuity (assuming compound interest)   
    16 payment amount PA    dollars   
    17 interest rate r     
    18 number of periods n    periods   
    19        
    20 FVannuity    dollars   
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    (source: Future value. (2006, October 10). In Wikipedia, The Free Encyclopedia. Retrieved 21:23, November 14, 2006, from http://en.wikipedia.org/w/index.php?title=Future_value&oldid=80589236)

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