Financial Calculators

Future Value Calculator

The Future Value Calculator is a smart tool that will quickly calculate the value of any investment at any given moment in the future.

Future Value Calculator

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Table of contents

The future value of money
Future value definition
What is the future worth?

The future value of money

It is important to begin at the beginning when explaining future values. First, it is important to understand that the time value is the fundamental assumption of future value. This idea is actually one of the fundamental principles of financial mathematics. We believe it is easy to understand, even for those just starting out in finance.
Let's begin with a simple question. Would you rather have one hundred dollars today than one hundred in a year? This is because you intuitively know the concept of the money's time value. This means that one hundred dollars are more valuable than one hundred tomorrow. Or, to put it another way, money available today is more valuable than money in the future.
Is this why? What makes the same amount of money more valuable today than it will in the future? It all comes down to the earning potential of the money you have. You can use the one hundred dollar example to put in your savings account (or any other investment) and you'll receive more over time than your initial payment. It will actually be one hundred dollars plus additional interest. Economists believe that the future worth of money equals its current value increased by interest. This leaves us with the question of how to calculate the future value for one hundred dollars. Continue reading and we'll try to explain it in detail.

Future value definition

Future value refers to the future value of an asset at a specific date in the future. The future value, in other words, is the amount of money that an investment will be worth after a specific period of time, given an assumed interest rate and a certain rate. The accumulation function is what converts the future value to the present value. This function, which is expressed in terms of time, expresses the ratio between the future value (or initial investment) and the future value.

What is the future worth?

If you own a business or have any appreciable assets, it is important to be able to calculate the future value. Knowing how valuable your assets are now will help you determine how valuable they will be in the future. This will allow you to plan better for the future. To avoid the problems of fluctuating money's value, it is important to have a future value calculator. Money is the way we assign value to things. Understanding how to calculate core assets' value in the present and the future is crucial.

Parmis Kazemi
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Parmis Kazemi
Parmis is a content creator who has a passion for writing and creating new things. She is also highly interested in tech and enjoys learning new things.

Future Value Calculator English
Published: Tue May 31 2022
In category Financial calculators
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