Future Value Calculator

Future Value Calculator

Future Value Calculator is the return for the money that is borrowed once to operate. In the capitalist economy, the price of money as a form of change in value now means the rental price of rented money. The concept of interest is the basis of financial mathematics. We heard the need to memorize some formulas at every step of our educational life. Sometimes we even wrote in our hand  to remember these formulas. In today's post, we will explain to you one of these formulas that we encounter most frequently in daily life and that directly affects our pocket, our budget: Future Value Calculator Formula

Future Value  = (Principal x Main Money x Year in which the Principal Remains Interest) / 100 

This way you can easily  calculate how much future value you will pay for your credit deposit account or how much interest you will earn for your time deposit account. To calculate the future value, we multiply the sum of the main money by the interest rate of the principal and the amount of interest in the principal amount of the year, and divide the sum we find into 100.  This is simple future value calculator formula. 

Now let's try to reinforce it with an example. Let's say we have 10.000 $ . We want to invest in the bank and get interest income. When we asked the banks, they said they were paying 12% a year. In this case, how much interest will we get if our money is in interest for 1 year.

In our future value calculator formula we will place our numbers according to this example.

Main Money (M) = $ 10,000

Interest rate (n) = 12

The year in which the principal remains in interest (t) = 1

Interest = (A x n x t) / 100

Interest = (10,000 x 12 x 1) / 100

Interest = (120,000) / 100

Interest = 1.200

If we invest 10 $ deposits, our annual interest income will be 1,200 $.  At the end of 1 year, we will have a total of 11,200 $. Thus, we applied the future value calculator formula.


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