Time Value of Money - Future Values

4 important questions on Time Value of Money - Future Values

What is Future Value?

The amount to which a cash flow or series of cash flows will grow over a given period of time when compounded at a given interest rate.

FVn = Future value of your account after N periods.

What does INT stand for?

Dollars of interest earned during the year

Beginning amount x I

How can FV be calculated? (4)

1. Step-by-step approach
2. Formula approach 
3. Financial Calculators
4. Spreadsheets
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What is the formula for the step-by-step approach?

FVn = PV (1+I)^n

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