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.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

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.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

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.
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.
References in periodicals archive ?
With residual values now in line with the latest Sunderland-made Qashqai, the future values make the X-Trail a particularly attractive proposition for fleet managers.
When capital gains are factored in and taxed periodically, while dividends are received and taxed annually, the calculation of present and future values can become quite complex.
The following sections present basic time value formulas for computing present values, future values, payments for annuities, the number of periods or the term, rates of return, and interest rate conversions, compounding periods, and effective interest rates, with examples.
Common problems in accounting practice related to capital budgeting include the failure to recognize the concept altogether, comparing present and future values, and comparing before- and after-tax numbers.
(23.) The expected after-tax future values of a traditional IRA contribution with and without the rollover option are $29,118 and $26,750, respectively.
The ministry believes estimates including future values will help investors in securitized assets compare benefits in investment, they said.
For the mark and the yen, past future values ((AR(l) process) are not significant in the determination of the mean.
Trade experts warn that future values of coupes are always uncertain because they are seen as a fashion-driven purchase.
traditional IRAs that ignores capital gains taxes, and that uses a single interest rate to compute all present and future values, can be satisfactory.
Network devices and errors can be viewed in an easy-to-understand graphical representation of the network, its traffic patterns, failure modes, and predicted future values. Kinnetics automatically interacts with Web-enabled management information commonly implemented in newer network devices.
[15.] The thirty-year estimate uses an inflation rate of zero, a Treasury borrowing rate of 3 percent, and a rate for discounting future values to the present of 3 percent.
Featuring easy-entry Cash Flow keys, Investor Plus allows users to enter up to 99 occurrences of 20 different cash flows; then calculate Net Present Values, Net Future Values, Internal Rates of Return and Modified Internal Rates of Return.

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