# 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)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.

*Investment dictionary.
Academic.
2012.*

### Look at other dictionaries:

**Future value**— measures the nominal future sum of money that a given sum of money is worth at a specified time in the future assuming a certain interest rate, or more generally, rate of return; it is the present value multiplied by the accumulation function.The … Wikipedia**future value**— (or terminal value) The value at some future point in time of a present amount of money, or a series of payments, evaluated at the appropriate interest (growth) rate … Black's law dictionary**Future value**— The amount of cash at a specified date in the future that is equivalent in value to a specified sum today. The New York Times Financial Glossary * * * future value future value ➔ value1 * * * The expected value of a payment (or series of… … Financial and business terms**future value**— The amount of cash at a specified date in the future that is equivalent in value to a specified sum today. Bloomberg Financial Dictionary * * * future value future value ➔ value1 * * * The expected value of a payment (or series of payments) at … Financial and business terms**future value**— The value that a sum of money (the present value) invested at compound interest will have in the future. If the future value is F, and the present value is P, at an annual rate of interest r, compounded annually for n years, F = P(1 + r)n. Thus a … Accounting dictionary**future value**— The value that a sum of money (the present value) invested at compound interest will have in the future. If the future value is F, and the present value is P, at an annual rate of interest r, compounded annually for n years, F = P(1 + r)n. Thus a … Big dictionary of business and management**future value**— Fin the value that a sum of money will have in the future, taking into account the effects of inflation, interest rates, or currency values. EXAMPLE Future value calculations require three figures: the sum in question, the percentage by which it… … The ultimate business dictionary**Future value**— (FV) The value of a cash flow expressed as a cash flow for a certain future date by compounding at the appropriate interest rate … International financial encyclopaedia**future value**— how much an amount of money will be worth once compound interest has been added … English contemporary dictionary**future value**— FV The quantifiable amount to which a sum of *money will grow if invested at a defined *interest rate … Auditor's dictionary