Question

By definition, future value is?

Answer 1

Future value is the value of an asset at a specific date. It measures the nominal future sum of money that a given sum of money is "worth" at a specified time in the future assuming a certain interest rate, or more generally, the rate of return; it is the present value multiplied by the accumulation function.

Answer 2

Future value is the value of an item calculated after certain years on a given value at a given certain interest rate.

Future value is always increasing in nature and when future value is decreasing it is know as Depreciate value.

And is calculated using the formula as stated

`FV=P(1+(r)/(100) )^n`

Where P is the principal amount that is the given amount for which we have t calculate the future value.

r is the rate of interest and it is the rate at which the given principal value is increasing.

n is the time period for which the principal value is kept.