Future Value Explained
The future value is the value of an asset (or investment) at a specific date in the future. Basically, it is the return on your investment factoring in inflation or interest rates. If you only used the return on investment function you would get inaccurate projections of your future investment value. Future value is not a 100% accurate projection. This is because interest rates are variable and change over time. However, it is one of the best financial tools for projecting the performance of an investment!