The future value calculator can be used to determine future value of a current amount. The future value can be calculated using parameters like amount, interest rate, time period.
What is the Formula to calculate Interest on Future Value?
Here is the formula of Future Value:
FV = PV * (1 + r) ^ n
FV – future value
PV – present value (the initial amount)
r – interest rate (per annum)
n – total number of periods (years) the money is invested for.
For example, your present value is Rs. 1,00,000 and you want to invest it for 3 years at a 10% interest rate. So total future value after 3 years including present value will be:
FV = 100000 (1 + 10/100) ^ 3 = Rs. 1,33,100