Future Value Factor Solution

STEP 0: Pre-Calculation Summary
Formula Used
Future Value Factor = (1+Rate per Period)^Number of Periods
FFV = (1+r)^nPeriods
This formula uses 3 Variables
Variables Used
Future Value Factor - Future Value Factor is a multiplier used to determine the future value of a sum of money invested at a specific interest rate over a certain number of periods.
Rate per Period - The Rate per Period is the interest rate charged.
Number of Periods - The Number of Periods is the periods on an annuity using the present value, periodic payment, and periodic rate.
STEP 1: Convert Input(s) to Base Unit
Rate per Period: 0.05 --> No Conversion Required
Number of Periods: 2 --> No Conversion Required
STEP 2: Evaluate Formula
Substituting Input Values in Formula
FFV = (1+r)^nPeriods --> (1+0.05)^2
Evaluating ... ...
FFV = 1.1025
STEP 3: Convert Result to Output's Unit
1.1025 --> No Conversion Required
FINAL ANSWER
1.1025 <-- Future Value Factor
(Calculation completed in 00.011 seconds)

Credits

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Created by Keerthika Bathula
Indian Institute of Technology, Indian School of mines, Dhanbad (IIT ISM Dhanbad), Dhanbad
Keerthika Bathula has created this Calculator and 100+ more calculators!
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Verified by Vishnu K
BMS College of Engineering (BMSCE), Bangalore
Vishnu K has verified this Calculator and 200+ more calculators!

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Future Value of Present Sum given Number of Periods
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Future Value of Present Sum given Total Number of Periods
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Future Value Factor Formula

​LaTeX ​Go
Future Value Factor = (1+Rate per Period)^Number of Periods
FFV = (1+r)^nPeriods

What is Future Value Factor ?

The Future Value Factor (FVF) is a numerical factor used to calculate the future value of an investment or sum of money over time. It represents the multiplier applied to the initial investment or principal amount to determine its future worth based on a specified interest rate and the number of compounding periods. The formula for calculating future value involves multiplying the initial amount by the future value factor. This concept is commonly used in finance and investment analysis to project the growth of investments or savings over time.




How to Calculate Future Value Factor?

Future Value Factor calculator uses Future Value Factor = (1+Rate per Period)^Number of Periods to calculate the Future Value Factor, The Future Value Factor is a multiplier used to determine the future value of a sum of money invested at a specific interest rate over a certain number of periods. Future Value Factor is denoted by FFV symbol.

How to calculate Future Value Factor using this online calculator? To use this online calculator for Future Value Factor, enter Rate per Period (r) & Number of Periods (nPeriods) and hit the calculate button. Here is how the Future Value Factor calculation can be explained with given input values -> 1.1025 = (1+0.05)^2.

FAQ

What is Future Value Factor?
The Future Value Factor is a multiplier used to determine the future value of a sum of money invested at a specific interest rate over a certain number of periods and is represented as FFV = (1+r)^nPeriods or Future Value Factor = (1+Rate per Period)^Number of Periods. The Rate per Period is the interest rate charged & The Number of Periods is the periods on an annuity using the present value, periodic payment, and periodic rate.
How to calculate Future Value Factor?
The Future Value Factor is a multiplier used to determine the future value of a sum of money invested at a specific interest rate over a certain number of periods is calculated using Future Value Factor = (1+Rate per Period)^Number of Periods. To calculate Future Value Factor, you need Rate per Period (r) & Number of Periods (nPeriods). With our tool, you need to enter the respective value for Rate per Period & Number of Periods and hit the calculate button. You can also select the units (if any) for Input(s) and the Output as well.
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