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:
“Plato—who may have understood better what forms the mind of man than do some of our contemporaries who want their children exposed only to “real” people and everyday events—knew what intellectual experience made for true humanity. He suggested that the future citizens of his ideal republic begin their literary education with the telling of myths, rather than with mere facts or so-called rational teachings.”
—Bruno Bettelheim (20th century)