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 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.
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RELATED FAQS

Why is the time value of money (TVM) an important concept to investors?
The time value of money (TVM) is an important concept to investors because a dollar on hand today is worth more than a dollar ... Read Full Answer >>
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