Investopedia

Continue to Site »

Future Value - FV

Filed Under » ,
Dictionary Says

Definition of 'Future Value - FV'

The value of an asset or cash at a specified date in the future that is equivalent in value to a specified sum today. There are two ways to calculate FV:

1) For an asset with simple annual interest: = Original Investment x (1+(interest rate*number of years))

2) For an asset with interest compounded annually: = Original Investment x ((1+interest rate)^number of years)
Investopedia Says

Investopedia explains 'Future Value - FV'

Consider the following examples:

1) $1000 invested for 5 years with simple annual interest of 10% would have a future value of $1,500.00.

2) $1000 invested for 5 years at 10%, compounded annually has a future value of $1,610.51.

Articles Of Interest

  1.

    Understanding The Time Value Of Money

    Find out why time really is money by learning to calculate present and future value.

  2. Microsoft Excel Features For The Financially Literate

    Here are some of Excel's functions and features that a financial professional can use to make his or her job more efficient.

  3. Time Value Of Money: Determining Your Future Worth

    Determining monthly contributions to college funds, retirement plans or savings is easy with this calculation.

  4. Bet Smarter With The Monte Carlo Simulation

    This technique can reduce uncertainty in estimating future outcomes.

  5. Calculating The Present And Future Value Of Annuities

    At some point in your life you will have to deal with a series of fixed payments over time, so it pays to know how to calculate them.

  6. Buy High, Sell Much Higher

    Value investing may seem fool-proof, but it carries more risk than you might know.

  7. Examining Stereotypes In Investing

    Irrespective of age, sex and other such factors, no normal investor wants an unsuitable investment. How much people really understand about their investments depends on various factors, including ...

  8. The Basics Of A Financial Analysis Report

    Running financial analysis on a company or industry is a key skill every investor must learn and understand how to undertake without which an ineffective financial report and investment recommendation ...

  9. Mining Stocks: Understanding Feasibility

    In this article, we'll look at the feasibility study as it relates to mining stocks and what it is actually telling investors.

  10. 5 ETFs Flaws You Shouldn't Overlook

    Despite their popularity, exchange traded funds have some drawbacks that investors should know about.
comments powered by Disqus
Marketplace
Hot Definitions

  1. Fool In The Shower

    The notion that changes or policies designed to alter the course of the economy should be done slowly, rather than all at once.

  2. Pattern Day Trader

    An SEC designation for traders who trade the same security four or more times per day (buys and sells) over a five-day period, and for whom same-day trades make up at least 6% of their activity for that period.

  3. Cost-Push Inflation

    A phenomenon in which the general price levels rise (inflation) due to increases in the cost of wages and raw materials.

  4. Happiness Economics

    The formal academic study of the relationship between individual satisfaction and economic issues, such as employment and wealth.

  5. Affluenza

    A social condition arising from the desire to be more wealthy, successful or to "keep up with the Joneses." Affluenza is symptomatic of a culture that holds up financial success as one of the highest achievements.

  6. Icarus Factor

    The term Icarus factor describes a situation where managers or executives initiate an overly ambitious project which then fails. Fueled by excitement for the project, the executives are unable to reign in their misguided enthusiasm before it is too late to avoid the failure.
Trading Center