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
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:
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Get the formula:
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Use some values:
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