According to Formula:- AFV=PV(1+i)
<h3>How do you calculate the future value of an investment?</h3><h3>
The future value formula</h3>
future value = present value x (1+ interest rate)n Condensed into math lingo, the formula looks like this:
FV=PV(1+i)n In this formula, the superscript n refers to the number of interest-compounding periods that will occur during the time period you're calculating for.
FV = $1,000 x (1 + 0.1)5
<h3>What will the future value be at the year's end?</h3>
If the proper interest (discount) rate is 5.34 percent annually, what will the investment be worth at the end of year five?
The present value ($100) plus the value of the interest at the set interest rate (5% of $100, or $5) equal the future value (FV) at the end of a year.
<h3>How is future value compounded annually determined?</h3>
The number of compound periods is exponentiated in formula 9.3, FV=PV(1+i)N. Over the course of five years, the 8% compounded monthly investment generates 60 periods of compound interest, whereas the 8% compounded annual investment generates only five periods.
<h3>How are present and future values determined?</h3>
Main Points
PV = FV/(1 + I n, where PV = present value, FV = future value, I = decimalized interest rate, and n = number of periods, is the formula for calculating present value.
The formula for future value is FV = PV (1 + i)n.
To Know more about future value (FV)
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