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:
“The primary function of myth is to validate an existing social order. Myth enshrines conservative social values, raising tradition on a pedestal. It expresses and confirms, rather than explains or questions, the sources of cultural attitudes and values.... Because myth anchors the present in the past it is a sociological charter for a future society which is an exact replica of the present one.”
—Ann Oakley (b. 1944)