The value of an investment at some point in the future given some assumptions about its returns. For simple interest it is given by the equation:
where:
PV = Present value of the investment
r = the interest rate
t = time
Future Value can also be given by a slightly more complex formula when we need to account for compounding growth or interest:
where:
C0 = Cost, or Present Value
r = return, or interest rate
n = number of periods compounding