Future value single sum could be calculated from the inbound correlation in between the future value and present value of money.
FVn = PV(1+K)^n
Where,
FVn = Future Value of Cash Inflow
PV = Initial Cash Flow
K = Annual Rate of Return
N = Life of Investment
For example:
If Mr. X deposit Rs.1,00,000 today in a Axis bank which pays 3.5% interest, find out the
future value of money after 3 years.
Future value of Rs.1,00,000 after three years will be = Rs.1,00,000(1+0.035)^3 = Rs. 110871.7875
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