future value


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Related to future value: Present value, Time value of money

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 ?
FUTURE VALUE TABLE The Sum To Which One Dollar Principal Will Increase (complete table is located on pages 500=501) Rate Years 3% 4% 5% 6% 1 1.
If the IRA is rolled over, then the after-tax future value at the end of the investment horizon will be:
1981; Mitchell, 1990), so relationships such as that between instantaneous energy, gain and lifetime fitness (McNamara, 1982) which otherwise may come into play when examining current behavior and future value are subsumed.
A] = future value of an annuity i = interest rate (annual) n = number of years A = amount of annual payment
5% growth, the projected future value of the Roth IRA after 25 years will be twice as large as the value claimed in the tax brief.
For example, if the car is worth pounds 11,000 it may be given a future value of pounds 6,000 in two years,
Lenders, investors and servicers are keen to know the future value of their collateral and the associated risks.
Dolgin added, "We received interest from movie and television studios, apartment converters and builders, museums and other parties who were placing bets on its future value based on the property's location, views, vast potential and the possibility of the 2012 Olympics coming here.
Balance sheets fail to reflect the major drivers of future value creation -- the research and product, process and software development that fuel high technology companies, and the brand value of leading consumer product companies.
Currently, with Home Properties' stock price at or below 90% of the midpoint of the company's published estimate of its net asset value range, re-purchasing shares is accretive and, we believe, will enhance future value for our shareholders.
While a number of sophisticated valuation models have been developed, like the Black-Scholes model, none have proven to be reliable indicators of future value.
Generally, the future value of full retirement payments begun at 65 will not equal the future value of reduced retirement benefits begun at 62 until many years in the future.

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