Future Value
Formula:FV = PV × (1 + r)n
Introduction to Future Value Calculator
The future value (FV) calculator is used to determine the future value of an investment or a loan based on the given present value (PV), periodic interest rate (r), and the number of periods (n). The future value represents the value of an asset or cash at a specified date in the future, based on an assumed growth rate. This formula takes into account the time value of money, indicating that a specific amount of money today has different value than the same amount in the future.
Parameter usage:
PV
= present value of the investment or loanr
= periodic interest rate (expressed as a decimal)n
= number of periods the money is invested or borrowed for
Output:
FV
= future value of the investment or loan
Data validation
PV, r, and n must be greater than zero for accurate calculation of the future value.
Summary
This calculator helps to forecast the future value of an investment or loan and is important for financial planning and decision-making.
Tags: Finance, Investment, Loan, Future Value, Time Value Of Money