Investment Fundamentals

Future Value

Definition

What is Future Value?

The amount an investment is expected to become after earning returns for a stated period.

Example in practice

₦200,000 invested at 8% for one year has a future value of ₦216,000.

Keep learning

The original amount of money invested or lent, excluding later returns.

Money or other resources committed to produce income, growth, or another economic benefit.

An asset or commitment of money made with the expectation of future income, growth, or both.

Anything with economic value that can be owned or controlled.

Think you know your investing terms?

Put your knowledge to the test with a quick quiz.