You may calculate the value of the investment after 10 years as follows: T = Number of periods the money is investedįor example, you deposit Rs 10,000 per month (The deposit is made at the end of each month) at an interest rate of 8% compounded monthly. (The formula assumes the deposits are made at the end of each period such as month or year). The future value calculator calculates the future value (FV) of an investment for a series of regular deposits, on a set rate of interest (r), and the number of years (t). Future value helps you to calculate the potential return from the project. If you invest money in a new project, it is essential to know the return on investment. Your investment must beat inflation over the long-term if you want to achieve crucial financial goals, such as buying a car or accumulating a corpus for children’s higher education and marriage.įuture value is significant for a business. Inflation is the climb in the prices of goods and services over some time. ![]() Understanding the concept of future value helps you to earn a return above inflation. It helps investors make sound financial decisions based on their financial goals. ![]() The future value is important to both investors and financial planners, as they may estimate how much an investment today is worth in the future. You get an idea of how much an investment today is worth in the future. The future value is a crucial concept as it shows you the value of your current savings in the future. It shows you the amount to which a current asset would grow over some time. ![]() Future value is the utility of cash or an asset at a particular date in the future.
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