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:
“Imagination places the future world for us either above or below or in reincarnation. We dream of travels throughout the universe: is not the universe within us? We do not know the depths of our spirit. M The mysterious path leads within. In us, or nowhere, lies eternity with its worlds, the past and the future.”
—Novalis [Friedrich Von Hardenberg] (1772–1801)