Investments and Savings

Investments and Savings

Future Value of Money

Future value is basically about the return on investment that earns with the compounding interest. Therefore, future value is the amount on which the original investment will grow based on the compounding interest and regular intervals. In this regard, future value calculations are useful for calculating different choices. For instance, having lump sum money and several options are available where to invest or deposit the amount. Similarly, these different choices came up with different interest rates and compounding intervals. Thus, future value calculation assists in comparing the growth of each option with all ...