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How do you calculate future value formula?

The formula for the future value of money using simple interest is FV = P(1 + rt). In this formula, FV = the future value, P = the principal amount, r = rate of interest per year (expressed as a decimal) and t = the number of years. 2. Determine how much you need today to achieve a specific financial goal.

What is the formula for calculating future value?

The simplest formula of a future value (FV) is an investment that earns simple interest. The present value (PV) is the amount that is to be invested today. The interest rate (i) is the annual interest rate. Time (t) is the length of time in the future that is to be calculated. The formula is: FV = PV*(1 + i*t). Ad.

How do you calculate future values?

How to Calculate Future Value. You can calculate the future value of money in an investment or interest bearing account. First, find out the interest rate, the number of periods and whether the account earns simple or compound interest. Then, you can plug those values into a formula to calculate the future value of the money.

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