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VALUATION

Future Value

Compounds a present amount into a future value.

Formula

FV = PV(1+r)^t

Variables: Present value; growth rate; time

What it means

Compounds a present amount into a future value.

Example

100 compounded at 5% for two years becomes 110.25.

How to interpret it

This concept should be read together with its market convention, measurement horizon and underlying instrument. BondStats presents it as an analytical reference rather than investment advice; instrument documentation and primary market rules remain authoritative.

BondStats reference content is independently written. Mathematical relationships, abbreviations and market conventions are presented for educational and analytical use.