Future Value Calculator
The Future Value Calculator is a tool that helps you determine the future value of an investment based on the present value, interest rate, and number of periods. It takes into account the compounding frequency and provides the result in various time intervals.
Calculator
Future Value
| Yearly | Half-yearly | Quarterly | Monthly | Weekly | Daily |
|---|---|---|---|---|---|
Formula
Future value formula: FV = PV * (1 + r/k)^(n*k)
Where:
- FV = Future Value
- PV = Present Value
- r = Annual Interest Rate
- n = Number of Years
- k = Compounding Frequency per Year
Advantages
- Helps in planning for future financial goals
- Allows comparison of different investment options
- Provides a clear understanding of the potential growth of an investment
Disadvantages
- Assumes a constant interest rate and compounding frequency
- Does not account for inflation or taxes
- Relies on accurate input values
FAQs
The Future Value Calculator is a tool that helps you determine the future value of an investment based on the present value, interest rate, and number of periods. It takes into account the compounding frequency and provides the result in various time intervals.
The calculator uses the future value formula: FV = PV * (1 + r/k)^(n*k), where FV is the future value, PV is the present value, r is the annual interest rate, n is the number of years, and k is the compounding frequency per year. You input the present value, interest rate, number of periods, and compounding frequency, and the calculator provides the future value in different time intervals.
The Future Value Calculator helps in planning for future financial goals, allows comparison of different investment options, and provides a clear understanding of the potential growth of an investment.
The Future Value Calculator assumes a constant interest rate and compounding frequency, does not account for inflation or taxes, and relies on accurate input values.
To use the Future Value Calculator, enter the present value, interest rate, number of periods, and select the compounding frequency. Click the "Calculate" button, and the future value will be displayed in a table format for different time intervals (yearly, half-yearly, quarterly, monthly, weekly, and daily). The formula and its explanation will also be shown.
The Future Value Calculator uses the formula: FV = PV * (1 + r/k)^(n*k), where FV is the future value, PV is the present value, r is the annual interest rate, n is the number of years, and k is the compounding frequency per year.
Yes, the Future Value Calculator can be used for various investment scenarios, such as savings accounts, bonds, stocks, and mutual funds. However, it's important to note that the calculator assumes a constant interest rate and compounding frequency, which may not always be the case in real-world investments.