{"id":49384,"date":"2025-12-08T13:58:25","date_gmt":"2025-12-08T13:58:25","guid":{"rendered":"https:\/\/certifeka-edu.com\/programs\/finance-for-strategic-managers-accounting-module\/lessons\/lesson-2-the-equation-for-future-value-5\/"},"modified":"2025-12-08T13:58:25","modified_gmt":"2025-12-08T13:58:25","slug":"lesson-2-the-equation-for-future-value-5","status":"publish","type":"lesson","link":"https:\/\/certifeka-edu.com\/ar\/programs\/finance-for-strategic-managers-accounting-module\/lessons\/lesson-2-the-equation-for-future-value-5\/","title":{"rendered":"Lesson 2: The Equation for Future Value"},"content":{"rendered":"<p><img decoding=\"async\" src=\"https:\/\/certifeka-edu.com\/wp-content\/uploads\/2025\/04\/logos-png-01-296x57-1.png\" alt=\"\" width=\"96\" height=\"114\" \/><\/p>\n<h2>Lesson 2: Future value of a single amount<\/h2>\n<h3>The Equation for Future Value<\/h3>\n<h5>The basic relationship in Equation can be generalized to find the future value after any number of periods.<\/h5>\n<p><img decoding=\"async\" src=\"https:\/\/certifeka-edu.com\/wp-content\/uploads\/2025\/08\/FV.png\" alt=\"\" width=\"208\" height=\"208\" \/><\/p>\n<h5 style=\"text-align: center\">Is for future value at the end of period n<\/h5>\n<p><img decoding=\"async\" src=\"https:\/\/certifeka-edu.com\/wp-content\/uploads\/2025\/08\/PV.png\" alt=\"\" width=\"208\" height=\"208\" \/><\/p>\n<h5 style=\"text-align: center\">Is for initial principal, or present value<\/h5>\n<p><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/certifeka-edu.com\/wp-content\/uploads\/2025\/08\/R.png\" alt=\"\" width=\"208\" height=\"208\" \/><\/p>\n<h5 style=\"text-align: center\">Is for an annual rate of interest paid.<\/h5>\n<p><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/certifeka-edu.com\/wp-content\/uploads\/2025\/08\/N.png\" alt=\"\" width=\"208\" height=\"208\" \/><\/p>\n<h5 style=\"text-align: center\">Is for number of periods (typically years) that the money is left on deposit<\/h5>\n<p><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/certifeka-edu.com\/wp-content\/uploads\/2025\/08\/Equaion-1024x209.png\" alt=\"\" width=\"660\" height=\"135\" \/><\/p>\n<h5>Now we will use the same example, we shall deal with it using the Future Value Equation.<\/h5>\n<h5>Example<br \/>\nIf Fred Moreno places $100 in a savings account paying 8% interest compounded annually, how much would be in the account in2 years?<\/h5>\n<h5>Solution<br \/>\nFuture value at end of the year 2<br \/>\nFVn= PV \u00d7(1+r) n<br \/>\n=$100 \u00d7(1+0.08) \u00d7 (1+0.08)<br \/>\n=$100 \u00d7(1+0.08)2<br \/>\n=$116.64<\/h5>\n<h5>Another example using the Future Value Equation.<\/h5>\n<h5>Example<br \/>\nJane Farber places $800 in a savings account paying 6% interest compounded annually. She wants to know how much money will be in the account at the end of 5 years.<\/h5>\n<h5>Solution<br \/>\nFuture value at end of the year 5<br \/>\nFVn= PV \u00d7(1+r) n<br \/>\nFV=$800, r=6%, And n=5<br \/>\nFV5=$800 \u00d7(1+0.06)5<br \/>\n$800 \u00d7(1.33823)=$1,070.58<\/h5>\n<p><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/certifeka-edu.com\/wp-content\/uploads\/2025\/08\/f6b2a7b1d563fde8785a8b921710b82a.png\" alt=\"\" width=\"603\" height=\"456\" \/><\/p>","protected":false},"comment_status":"open","ping_status":"closed","template":"","class_list":["post-49384","lesson","type-lesson","status-publish","hentry"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.5 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Lesson 2: The Equation for Future Value - Certifeka-edu<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/certifeka-edu.com\/ar\/programs\/finance-for-strategic-managers-accounting-module\/lessons\/lesson-2-the-equation-for-future-value-5\/\" \/>\n<meta property=\"og:locale\" content=\"ar_AR\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Lesson 2: The Equation for Future Value - Certifeka-edu\" \/>\n<meta property=\"og:description\" content=\"Lesson 2: Future value of a single amount The Equation for Future Value The basic relationship in Equation can be generalized to find the future value after any number of periods. 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