Difference between revisions of "Future value"
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==Definitions== | ==Definitions== | ||
According to [[Financial Management Theory and Practice by Eugene F. Brigham and Michael C. Ehrhardt (13th edition)]], | According to [[Financial Management Theory and Practice by Eugene F. Brigham and Michael C. Ehrhardt (13th edition)]], | ||
| − | :[[Future value]] ( | + | :[[Future value]] (''FV'', ''FV<small>N</small>''). The future value of an initial single cash flow, where N is the number of periods the initial cash flow is compounded. |
| + | According to [[Fundamentals of Financial Management by Eugene F. Brigham and Joel F. Houston (15th edition)]], | ||
| + | :[[Future value]]. The amount to which a [[cash flow]] or series of cash flows will grow over a given period of time when compounded at a given [[interest rate]]. | ||
==Related concepts== | ==Related concepts== | ||
Revision as of 22:01, 1 November 2019
Future value (also known by its acronym, FV, as well as FVN) is the future value of an initial single cash flow, where N is the number of periods the initial cash flow is compounded.
Definitions
According to Financial Management Theory and Practice by Eugene F. Brigham and Michael C. Ehrhardt (13th edition),
- Future value (FV, FVN). The future value of an initial single cash flow, where N is the number of periods the initial cash flow is compounded.
According to Fundamentals of Financial Management by Eugene F. Brigham and Joel F. Houston (15th edition),
- Future value. The amount to which a cash flow or series of cash flows will grow over a given period of time when compounded at a given interest rate.
Related concepts
- Financial management. A combination of enterprise efforts undertaken in order to procure and utilize monetary resources of the enterprise.
