Finance & Interest
Basic

Future Value

Future worth of a present sum.

Formula

FV=PV(1+r)nFV = PV(1 + r)^n

Variables

PVPresent value
rRate
nPeriods

Example

$500 growing at 6% for 4 years becomes 500·1.06⁴ ≈ $631.24.

Did You Know?

A dollar today is worth more than a dollar tomorrow — the core idea behind the time value of money.

valuationfuture value