Instructions

Determine the type of money value to be calculated. A money value can be calculated to find the present value or future value of an amount of money, called a single sum, or a series of payments, called an annuity.

Calculate the future value of a single sum of money using the formula FV = PV (1+i)^n, where FV is the value at some point in the future; PV is the value today; i is the interest rate; and n is the number of periods, usually years, over which the money value is to be calculated. For example, the future value of $10 you have today one year from now, given a 10 percent interest rate, is FV = $10(1+.10)^1 = $11, as opposed to $10.

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