What Is a Future Value?
Future value is the expectation of the future. The value of an asset or cash at a specific future date is equal to a specific sum of today's value. Appreciation means that the price of a certain commodity (including currency) has increased relative to other commodities. For example, if you fire a house now, you just want it to rise in the future and your house will appreciate. This is a positive example of future value.
Future value
Right!
- Chinese name
- Future value
- Concept
- Expectations for the future
- Definition
- The value of the asset or cash at a specific future date
- equal to
- Specific sum of today's value
- Future value is the expectation of the future. The value of an asset or cash at a specific future date is equal to a specific sum of today's value. Appreciation means that the price of a certain commodity (including currency) has increased relative to other commodities. For example, if you fire a house now, you just want it to rise in the future and your house will appreciate. This is a positive example of future value.
- Future value is the expectation of the future. The value of an asset or cash at a specific future date is equal to a specific sum of today's value.
- For example, if you fire a house now, you just want it to rise in the future and your house will appreciate. This is a positive example of future value. Similarly, if you look at the empty market, the house you originally held is sold. Feel it will fall in the future. This is the opposite of future value.
- There are two ways to calculate future value:
- 1. Assets with single interest per year:
- Initial investment x (1+ (interest rate * years))
- 2. Assets with compound interest each year:
- Initial investment x ((1 + interest rate) ^ years)
- Appreciation means that the price of a certain commodity (including currency) has increased relative to other commodities. Currency appreciation is also called "currency appreciation." Refers to the policy of capitalist countries to increase the amount of gold in their currencies and increase the exchange rate of their currencies against foreign countries. Currency appreciation is another manifestation of currency instability in capitalist countries. It does not mean increasing the domestic purchasing power of the national currency, but only increasing the exchange rate of the domestic currency against foreign currencies.