Future Value (FV) calculates what a current sum of money will be worth at a future date, given a rate of return. It is the foundation of investment planning — showing the power of compound growth over time.
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Pro Tip
The single most powerful factor in future value isn't the rate — it's time. Starting 10 years earlier with half the monthly contribution often beats starting later with a larger amount.
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Did You Know?
Albert Einstein is often (perhaps apocryphally) credited with calling compound interest "the eighth wonder of the world." Whether he said it or not, the math makes the point — $1 invested at 10% for 100 years becomes $13,780.
References
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