Finance
Future Value Formula - Finance
Learn the future value formula with examples, step-by-step guide, and calculator tools. Calculate future value of an investment
The future value formula is a fundamental concept in finance. Calculate future value of an investment. This page provides a comprehensive guide with worked examples and practical applications.
The Formula
\[FV = PV(1 + r)^n\]
Variables
FV
Future value
PV
Present value
r
Interest rate per period
n
Number of periods
Step-by-Step Guide
- 1
Step 1: Gather your data values
- 2
Step 2: Apply the formula
- 3
Step 3: Perform the calculations
- 4
Step 4: Interpret the result
Examples
Example 1
Example 1: [1000,0.08,10] → FV = 1000 × (1.08)¹⁰ = $2,158.92
Example 2
Example 2: 2158.92
Frequently Asked Questions
What is the future value formula?
Calculate future value of an investment
How do I calculate future value formula?
Use the formula: FV = PV(1 + r)^n. Follow the steps provided above.
What tools can help with future value formula?
We provide online calculators: investment-calculator