What Is Future Value?
Future value is what an amount today grows to, at a given rate, after a number of periods.
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1.What is future value?
Future value is what an amount today grows to, at a given rate, after a number of periods.
2.How does future value relate to present value?
Present value divides by one plus the rate to the power of the periods; future value multiplies by it.
3.1,000 at 6 percent for 12 years gives about 2,012. What does 24 years give?
The money doubled in the first twelve years and the doubled amount doubled again: about 4,049.
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Sources (1)
- Eigene Berechnung (synthetisches Rechenbeispiel
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