Tip - Future Value (FV) Definition | Investopedia

Published  | Submitted by Martin Rosu 00e 9n
Future Value (FV) Definition | Investopedia

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)
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