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Future Value
Source:
Encyclopedia of Banking & Finance (9h Edition) by Charles J Woelfel
(We recommend this as work of authority and you can order
it here)
The future
value (amount) of a single sum at compound interest is the original amount
plus the compound interest thereon, stated as of a specific future date.
Selections from a future value of one table is presented here:
|
Period
|
10%
|
14%
|
|
1
|
1.1999
|
1.1400
|
|
4
|
1.4641
|
1.6890
|
For
Example, what will be the amount in a savings account on December 31,
1990, if $10,000 is invested at 14 percent interest on December 31, 1986?
Using a Future Amount of 1 Table for i = 14 percent and n = 4,
the future amount can be computed as follows:
$10,000
x 1.68896 =
$16,889.60.
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