future valuethe value of an investment is based, Financial Management

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future valuethe value of an investment is based

Future Value

The value of an investment is based on the rate of interest paid at set time periods and at some point in the future. Future values incorporate both the income rate of interest and the amount of interest compounded on interest already earned. Interest may be compounded in annually, monthly, weekly or even daily. The more frequently profit is compounded, the higher the future value of the investment.

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