# future value

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Related to Future Values: Present value

## Future value

The amount of cash at a specified date in the future that is equivalent in value to a specified sum today.

## Future Value

The value of an asset or investment at a certain point in the future when its return is a known factor. That is, the future value of an investment is useful only when the security being measured has a fixed rate of return. Stocks are highly unlikely to be measured for future value because their returns are too volatile. The future value is used for bonds, interest-bearing accounts, certificates of deposit, and other, similar assets.

## future value

The amount to which a specific sum or series of sums will grow on a given date in the future. The sums are assumed to earn an annual return that is related to the market rate of interest. For example, \$1,000 has a future value of \$1,120 in one year, assuming an annual return of 12%. Compare present value.
References in periodicals archive ?
Much has been made about the change of date and the effect this will have on future values.
The insurer wants the damage repaired by their bodyshop but they are not Jaguar approved and I believe it will affect the future value of the car if I come to sell it.
For example, if the numerical example above is extended to a ten-year investment horizon and continues to ignore the five-year rule, then the expected after-tax future values are \$9,385 for a traditional IRA and \$9,318 for a Roth IRA, and there is an 88 percent probability that a rollover will occur in years 1 through 5.
The ministry believes estimates including future values will help investors in securitized assets compare benefits in investment, they said.
The first does not correctly state the total future value of the contributory Roth because it omits the principal amount.
Clearly-labeled keys solve for Present and Future Value, Total Amount of Payments, Yield from an Entered Price and Price from an Entered Yield - all without having to re-enter the original loan amount or interest.
It performs, among other things, calculations for present value, future value, charitable remainder trust annuities and unitrusts and private annuities.

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