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future value
future value definition - finance
The
amount that an investment will be worth at a future date if it is invested at a
compounded interest rate. Future value is calculated using a future value table
that gives a factor based on interest rate and the time period for which the
investment will be held. The principal is then multiplied by the factor to
arrive at the future value.
Webster's New World Finance and Investment Dictionary Copyright © 2003 by Wiley Publishing, Inc., Indianapolis, Indiana.
Used by arrangement with John Wiley & Sons, Inc.
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