FUTURE VALUE
MANUAL OF FINANCIAL CONCEPTS
FUTURE VALUE
It is the value that a present investment will have in the future. The formula for the calculation is:
FV = PV (1+i)^n
Whereas:
PV: Present value of the investment.
n: Number of years of the investment (1,2,…,n).
i: Annual interest rate.
FV will be higher with a higher value of i and n.
Example of FV calculation:
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