Investment Fundamentals
Future Value
Definition
What is Future Value?
The amount an investmentAn asset or commitment of money made with the expectation of future income, growth, or both. is expected to become after earning returns for a stated period.
Example in practice
How This Looks in Practice
₦200,000 invested at 8% for one year has a future value of ₦216,000.
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Related Terms
Investment Fundamentals
Principal
The original amount of money invested or lent, excluding later returns.
Investment FundamentalsCapital
Money or other resources committed to produce income, growth, or another economic benefit.
Investment FundamentalsInvestment
An asset or commitment of money made with the expectation of future income, growth, or both.
Asset ClassesAsset
Anything with economic value that can be owned or controlled.