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Future value is the value of a current sum of money or stream of cash flows at a specified date in the future, given an assumed rate of return or interest rate. It reflects the time value of money, which holds that a sum of money has different value at different points in time because it can earn a return if invested.
Applications, Overview & Compound interest
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future value interest rate displaystyle time amount compounding nominal present investment periods per year money simple inflation compound example period
| Subject | Predicate | Object | Confidence | Src |
|---|---|---|---|---|
| Future value | is a | value of a current sum of money or stream of cash flows at a specified date in the future | 0.90 | text |
| Future value | is a | sum of the original principal and interest | 0.90 | text |
| bonds | instance of | future values are used together with present value to analyse long term projects and securities | 0.80 | text |
| annuities.Inflation affects the purchasing power of future cash flows | instance of | future values are used together with present value to analyse long term projects and securities | 0.80 | text |
| Future value | has application | Future | 0.60 | section |
| Future value | has application | Households | 0.60 | section |
| Future value | has application | For | 0.60 | section |
| Future value | has application | In | 0.60 | section |
| Future value | has application | These | 0.60 | section |
| Future value | related to Compound interest | To | 0.60 | section |
| Future value | related to Compound interest | FV | 0.60 | section |
| Future value | related to Compound interest | PV | 0.60 | section |
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