Future Value Calculator
Do you know that Future value is the value of an asset or investment as of some future date? Yes, the future value is the sum of money that an investment will be worth, assuming a certain rate of return after a specific amount of time (interest rate). Investors and financial planners emphasise future value because it enables them to predict how much an investment will be valued in the future.
Do you also know that there is a Future Value Calculator Online that helps us calculate the future value! Yes! Before we discuss how the future value calculator works, let us discuss what is actually meant by the future value:
What is Future Value?
The current asset's value at some point in the future based on an estimated rate of increase is known as a future value or FV.
Investors can use the FV calculation to estimate how much profit can be made from specific assets to varying degrees of accuracy. The calculation of FV is predicated on the notion of a constant growth rate.
Investors and financial planners use the future value (FV) to predict how much an investment made now will be worth. Investors can make wise investment choices based on their projected demands by knowing their future worth.
Future Value Formula
The formula for calculating the Future Value is-
Future Value= Invested Amount (1+ Rate of Return) ^Number of years
Isn't the formula too complicated? We also thought so! So, for such difficult calculations, Elearnmarkets has developed a Future Value Calculator Online to make the calculations easy.
Future Value Calculator Online
In Elearnmarkets Future Value Calculator Online, we need to enter the following inputs.
1.Present Value of Investment2.Number of years3.Expected Annual Rate of Return
After entering, click on the "Calculate Now", and we will get the amount as follows:
Future Value Calculator Benefits
Below are the benefits of using the Future Value Calculator.
With this calculator, you may find out the precise worth of the amount invested for the future.
Knowing the worth of the money invested in the future allows one to increase their investment options and build up a sizable corpus over time.
Now that we know what is Future Value, how it work and how to use the Future Value Calculator Online, let us discuss some FAQs about the same:
What is the future value of $1000 in 5 years at 8?
An investment of $1,000 made today will be worth $1,480.24 in five years at interest rate of 8% compounded semi-annually.
How can I get two crores in 10 years?
One of the best ways to make money is to make regular, long-term investments. You will need to invest about Rs 86,000 to amass Rs 2 crore in 10 years, assuming a 12 per cent annual return. The best way to succeed is to put money into a plan matching your risk tolerance and investment goals.
What is a future value example?
Future value is the amount that, with time and an interest rate, is invested now and will eventually become. As an illustration, if you deposit Rs. 1,000 today with a 2 per cent annual interest rate will be worth Rs. 1,020 after a year. Its future value is, therefore Rs. 1,020.
What will Rs. 1000 be worth in 20 years?
Our investor would have amassed Rs. 16,187 after ten years of adding the inflation-adjusted Rs. 1,000 every year. Not enough to truly blow anyone away. However, the account would be valued at Rs. 118,874 after 20 years of this.
As an enthusiast and expert in finance and investment, I possess a comprehensive understanding of the concepts outlined in the provided article about the Future Value Calculator and related financial terms. My expertise in this domain spans various aspects, from understanding the time value of money to employing financial formulas for future value calculations. Here's a breakdown of the concepts mentioned in the article:
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Future Value: It refers to the value an investment or asset will have at a future date, taking into account a specific rate of return over a defined period. This concept helps investors predict the potential growth of their investments.
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Future Value Formula: The formula used to calculate future value is Future Value = Invested Amount × (1 + Rate of Return) ^ Number of years. This formula determines the future worth of an investment considering the initial amount, the rate of return, and the investment period.
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Future Value Calculator Online: Elearnmarkets offers an online tool for computing future values. It requires inputs such as the present value of investment, the number of years, and the expected annual rate of return. After entering these details, the calculator computes the future value, simplifying the process for users.
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Benefits of Using the Future Value Calculator: The calculator helps individuals determine the precise future worth of their invested amount. Understanding the future value aids in making informed investment decisions, enabling the accumulation of a substantial corpus over time.
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Examples and Scenarios: The article provides scenarios and examples to illustrate how future value works. For instance, determining the future value of $1000 in 5 years at an 8% interest rate, calculating the investment required to accumulate two crores in 10 years, and showcasing how an investment of Rs. 1000 grows over time.
These concepts collectively emphasize the significance of future value calculations in investment planning. They showcase how investors and financial planners utilize these calculations to gauge potential returns, make informed investment choices, and comprehend the growth of their investments over time.
