Saturday, 3 December 2016

WHAT IS FUTURE VALUE?


Future Value definition


  • It always refers to a method of calculating how much the present value (PV) of an asset or cash will be worth at a specific time in the future.
  • It is to 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.

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