Future Value Formula
FV = PV × (1 + r)ⁿ
Where: PV = Present value, r = Annual rate, n = Years
Example
$100,000 invested at 10% for 15 years
FV = 100,000 × (1.10)^15 = 100,000 × 4.1772 = $417725
The Power of Compounding
| Years | FV at 8% | FV at 12% |
|---|---|---|
| 5 | $146,933 | $176,234 |
| 10 | $215,892 | $310,585 |
| 20 | $466,096 | $964,629 |
| 30 | $1006,266 | $2,995,992 |