| Future Value - FV | |
 The value of an asset or cash at a specified date in the future that is equivalent in value to a specified sum today. There are two ways to calculate FV: 1) For an asset with simple annual interest: = Original Investment x (1+(interest rate*number of years)) 2) For an asset with interest compounded annually: = Original Investment x ((1+interest rate)^number of years) |
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 Consider the following examples: 1) $1000 invested for 5 years with simple annual interest of 10% would have a future value of $1,500.00. 2) $1000 invested for 5 years at 10%, compounded annually has a future value of $1,610.51. |
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