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Mahesh Reddy
Semi qualified CMA (... • 9m
Hey founder👋 Ever wondered how much your money can grow over time? Let me break down the concept of Future Value (FV) What’s FV? It’s the value of money at a future date, considering interest or growth over time. Think of it as how ₹1 today can turn into more tomorrow, thanks to compounding! Example: Imagine you invest ₹1 lakh at an annual interest rate of 10% for 3 years. Here’s how we calculate its FV: - Year 1 = ₹1L × (1+0.10)^1 = ₹1.10L - Year 2 = ₹1L × (1+0.10)^2 = ₹1.21L - Year 3 = ₹1L × (1+0.10)^3 = ₹1.33L **Future Value (FV)** = ₹1.33 lakh 💸
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