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 ?
As you all know, the theme for this year's conference is, "Advancing Our Future Value." The concepts of being future-focused and delivering real, sustainable value are something we at Diageo are constantly thinking about.
The outcome is Rs 2,78,657, which is the future value of the SIP.
[] $1.50 In 4 Years The future value of money can be best understood by referring to the Future Value Table on pages 500-501.
"Motorists did however correctly identify that leather interiors are likely to add to a car's future value."
As per news reports, in December, Kishore Biyani had formally announced his intention to hive off the group's value segments a" Big Bazaar and Food Bazaar a" into a separate company named Future Value Retail from January 1 this year.
The Future Value Table on page 583, will help you make the decision, since it shows the sum to which one dollar per year will grow if placed in accounts at varying rates of interest.
It would not be helpful to measure the future value of a series of payments during that period.
Blended with financial models for capital valuation and allocation, business decisions are being made based on the cost of needed capital, or economic capital, and the risk adjusted rate of return (the future value of discounted cash flows and the cost of money).
These are contracts based on the future value of published price assessments, with the swap being one of the hedging tools.
Like an appraisal, a storage assessment is intended to ensure that the current value and future value of storage assets are fully realized.
Virtually all financial planning and investment analyses involve weighing tradeoffs between dollars today (e.g., investment outlays) versus dollars tomorrow (e.g., investment returns): that is, present value and future value concepts.

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