Procedure of measurement of Future Value

If we are getting a return of 10 % in one year then what is the return we are going to get in two years? 20 %, right. What about return on 10 % that you are going to get at the end of one year? If we also take it into consideration the interest which we get on this 10 % then we get a return of 10 + 1 = 1 1 % in second year making for a total return of 21 %. This is the same as compound value calculations.

Future Value = (Investment or Present Value) * (1 + Interest) No. of time Periods

 

Posted Date: 9/5/2013 1:49:10 AM | Location : United States

Ask an Expert

Related Discussions:- Procedure of measurement of future value, Assignment Help, Ask Question on Procedure of measurement of future value, Get Answer, Expert's Help, Procedure of measurement of future value Discussions

Write discussion on Procedure of measurement of future value
Your posts are moderated

Write your message here..

Related Questions

What is the trade payable days, What is the Trade payable days (turnover) ... What is the Trade payable days (turnover) Year-end trade payables/Credit purchases (or cost of sales)x   365days This is the length of time taken to pay suppliers. The rat

Determine the fields of finance, Determine the Fields of Finance Academ... Determine the Fields of Finance Academic discipline of financial management may be viewed as made up of five specialized fields. In every field, financial manager is dealing wi

Cash flow of reverse convertibles, (a) Let's presume that the firm may defa... (a) Let's presume that the firm may default only on last coupon payment date and that when this take place stock price would be less than some predetermined price K at the expira

Illustrate report on net present value, Q. Illustrate report on net present... Q. Illustrate report on net present value? The NPV of a project is a positive $56000. This point to that using our cost of capital 10% as our discount rate the project is we

Explain how to compute the overall balance, Explain how to compute the over... Explain how to compute the overall balance and discuss its significance. The overall BOP is defined by computing the cumulative balance of payments involving the current account,

Healthcare Finance, I am trying to make a payment and I can''t seem to get ... I am trying to make a payment and I can''t seem to get it to go throught on you all site..

Enumerate the securities and investment analysis, Enumerate the Securities ... Enumerate the Securities and Investment Analysis Purchase of bonds, stocks and othersecurities involve analysis and techniques which are highly specialized. An investorshoul

Financial analysis task force, Task I am sure you are aware that the c... Task I am sure you are aware that the corporate annual meeting is coming up soon. As part of the Treasurer's presentation, I have been asked to propose a Special Capital Requi

Structure and participation of hedge funds, Structure and Participation of ... Structure and Participation of Hedge Funds: The typical structure for a Hedge Fund is to facilitate the tax concerns of investors and fund managers. Basically, there are two or

Consistency in accounting, Consistency - ACCOUNTING postulate that stipulat... Consistency - ACCOUNTING postulate that stipulates, except as otherwise noted in FINANCIAL STATEMENT, same accounting procedures and policies have been followed from period to peri