Financial Formulas - Category Future value
Future value is a fundamental principle that enables us to ascertain the future worth of cash flows by compounding them from their present value. Serving as a cornerstone in finance, future value provides a crucial tool for evaluating potential returns, repayments, or project outcomes. Understanding the concept of future value and its mathematical expressions is imperative for financial analysts, investors, and planners. It equips them to make informed decisions, factoring in the time value of money in their assessments.
Formulas in this category
- Future value of a single cash flow (sub-annual compounding of interest)
- Future value of a single cash flow (annual compounding of interest)
- Future value of a series of n cash flows placed at the start of each interest period for n periods
- Future value of a series of n cash flows placed at the end of each interest period for n periods
- Cash flows required for the constitution of a capital