Future value is the value of an asset at a specific date. It 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 value does not include corrections for inflation or other factors that affect the true value of money in the future. This is used in time value of money calculations.
Read more about Future Value: Overview, Simple Interest, Compound Interest
Famous quotes containing the word future:
“Mothers have as powerful an influence over the welfare of future generations, as all other causes combined.”
—John Abbott. The Mother at Home; or the Principles of Maternal Duty, John Abbott, Crocker and Brewster (1833)