Ending Market Value (EMV)

AAA

DEFINITION of 'Ending Market Value (EMV)'

The value of an investment at the end of the investment period. Ending market value (EMV) is calculated by taking the beginning market value and adding the interest earned over the course of the investment.

Ending Market Value = Beginning Market Value x (1 + interest rate).

This is an important equation to consider when choosing an investment as the time value of money can be a valuable decision-making variable.

INVESTOPEDIA EXPLAINS 'Ending Market Value (EMV)'

For example:

Beginning market value = 100
Interest rate = 10%

EMV = 100 x (1 + 0.10)
EMV = 110

RELATED TERMS
  1. Market Value

    The price an asset would fetch in the marketplace. Market value ...
  2. Valuation

    The process of determining the current worth of an asset or company. ...
  3. Interest Rate

    The amount charged, expressed as a percentage of principal, by ...
  4. Investment

    An asset or item that is purchased with the hope that it will ...
  5. Time Value of Money - TVM

    The idea that money available at the present time is worth more ...
  6. Surrender Period

    The amount of time an investor must wait until he or she can ...
Related Articles
  1. Accelerating Returns With Continuous ...
    Bonds & Fixed Income

    Accelerating Returns With Continuous ...

  2. Delay In Retirement Savings Costs More ...
    Retirement

    Delay In Retirement Savings Costs More ...

  3. Understanding The Time Value Of Money
    Investing Basics

    Understanding The Time Value Of Money

  4. Why Stocks Outperform Bonds
    Bonds & Fixed Income

    Why Stocks Outperform Bonds

Hot Definitions
  1. Gross Rate Of Return

    The total rate of return on an investment before the deduction of any fees or expenses. The gross rate of return is quoted ...
  2. Debit Spread

    Two options with different market prices that an investor trades on the same underlying security. The higher priced option ...
  3. Leading Indicator

    A measurable economic factor that changes before the economy starts to follow a particular pattern or trend. Leading indicators ...
  4. Wage-Price Spiral

    A macroeconomic theory to explain the cause-and-effect relationship between rising wages and rising prices, or inflation. ...
  5. Accelerated Depreciation

    Any method of depreciation used for accounting or income tax purposes that allows greater deductions in the earlier years ...
  6. Call Risk

    The risk, faced by a holder of a callable bond, that a bond issuer will take advantage of the callable bond feature and redeem ...
Trading Center