Wolfram Computation Meets Knowledge

Present and Future Value with Continuous Compounding

Future value is the value of an asset at a specific date, assuming a certain interest rate, or more generally, rate of return.

The future value equals the present value times the exponential of the continuous interest rate times the interest periods.

Formula

QuantityVariable["FV", "Money"] == E^(QuantityVariable["i", "Unitless"]*QuantityVariable["n", "Unitless"])*QuantityVariable["PV", "Money"]

symbol description physical quantity
FV future value "Money"
i continuous interest rate "Unitless"
n interest periods "Unitless"
PV present value "Money"

Forms

Examples

Get the resource:

In[1]:=
ResourceObject["Present and Future Value with Continuous Compounding"]
Out[1]=

Get the formula:

In[2]:=
FormulaData[
 ResourceObject[
  "Present and Future Value with Continuous Compounding"]]
Out[2]=

Use some values:

In[3]:=
FormulaData[
 ResourceObject[
  "Present and Future Value with Continuous Compounding"], \
{QuantityVariable["n","Unitless"] -> 5, 
  QuantityVariable["i","Unitless"] -> Quantity[6.`, "Percent"]}]
Out[3]=

Publisher Information