The value of an investment or asset at a specified future date, considering the effects of compound interest or investment returns.
Future Value is a financial concept that represents the projected worth of an investment or cash flow at a future date, considering the impact of compounding growth or interest over time. It quantifies the potential value that an investment or asset may accumulate based on factors such as the initial amount invested, the rate of return, and the time period involved. Small business owners can use the concept of Future Value to make informed decisions about investment opportunities, savings plans, and long-term financial strategies that can contribute to their business growth and financial success.