78,272.3 is the future value of $4,900 deposited each year for 14 years in an account earning 2% per year.
Future value = fv = pmt x ((1+r)^n-1))/r
= $78,272.30
4900*(((1.02^14)-1)/0.02)
Future value = present value x (1+ interest rate)n Condensed into math lingo, the formula looks like this:
FV=PV(1+i)n In this formula, the superscript n refers to the number of interest-compounding periods that will occur during the time period you're calculating for.
FV = $1,000 x (1 + 0.1)5.
Future value is a financial concept that assigns value to assets based on estimated variables such as future interest rates and cash flows. It is useful for investors to know what their investment will look like in five years and what the expected return will be. This concept of taking today's investment value, applying the expected growth, and calculating what the investment will be in the future is the future value.
A future value calculation determines how much a single deposit, investment, or balance will grow.
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