**Present Value**(PV) is a

**formula**used in Finance that calculates the

**present**day

**value**of an amount that is received at a future date. Time

**value**of money is the concept that receiving something today is worth more than receiving the same item at a future date.

Regarding this, what is the future value of your money?

**Future value**is the

**value**of an asset at a specific date. It measures the nominal

**future**sum of

**money**that a given sum of

**money**is "worth" at a specified time in the

**future**assuming a certain interest rate, or more generally, rate of return; it is the present

**value**multiplied by the accumulation function.

Is there a formula for compound interest?

Let's look at an

**example**. If an amount of $5,000 is deposited into a savings account at an annual**interest**rate of 5%,**compounded**monthly, the value of the investment after 10 years can be calculated as follows P = 5000. r = 5/100 = 0.05 (decimal).How do you calculate future value in Excel?

**Excel FV Function**

- rate - The interest rate per period.
- nper - The total number of payment periods.
- pmt - The payment made each period. Must be entered as a negative number.
- pv - [optional] The present value of future payments. If omitted, assumed to be zero.
- type - [optional] When payments are due.