Future value

25 Feb 11, 04:23 PM, Africa/Lagos

Future value measures the nominal future sum of money that a given sum of money is "worth" at a specified time in the future assuming a certain interest rate, or more generally, rate of return; it is the present value multiplied by the accumulation function[citation needed].

The value does not include corrections for inflation or other factors that affect the true value of money in the future. This is used in time value of money calculations.