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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.
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
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.