Future value

The future value is the sum to which an investment will grow or accumulate over time at a given interest rate and compounding frequency.

Examples

•

What is the future value of $500 after 6 months at 7 % compounded quarterly?

Calculation	Single Payment

Input	Nominal annual rate:	7 %
	Interest is compounded:	quarterly
	Periods:	monthly
	Number of periods:	6
	Single payment:	500

Result	Future value:	517.65

Answer: $517.65.

•

You have to pay $100 every year for 5 years. What value does this series represent after the final payment at an interest rate of 4 % compounded monthly?

Calculation	Periodic Payments

Input	Nominal annual rate:	4 %
	Interest is compounded:	monthly
	Payments are made:	annually
	Number of years:	5
	First payment:	100
	Periodic change: none

Result	Future value:	542.44

Answer: $542.44.

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