Present value is defined as the worth of today’s assets in future, assuming a certain interest rate. In reality Future value is calculated as per rate of return.
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It is important to note that Future value does not consider fluctuations in inflation in its calculation
Future value can be calculated in two ways, depending on the asset and rate of return as mentioned below:
- Future value = Original Investment x (1+ (interest rate*number of years)), If the asset is with simple annual interest
- Future value = Original Investment x ((1+interest rate) ^number of years), If the asset is with interest compounded annually
Future value has a wide range of applications in the field of finance.
Graduate Tutor’s Finance Homework help group can tutor you Future value and applications of Future value in detail
A few samples topics that the Tutor group can tutor you are listed below:
- Future value
- Rate of return
- Present value
- Net present value
- Calculations of present and Future value
Graduate Tutor's expert tutors consist of MBA, CPAs or CFAs who can provide you Future value homework help tutoring in addition to other finance tutoring. Email us for more information.
