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How to Calculate Future Value: Formula & Example

Instructions:

Choose an answer and hit 'next'. You will receive your score and answers at the end.

question 1 of 3

Using the future value formula can:

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1. In the future value formula FV = X * (1 + i)^n, what does X represent?

2. Why should the future value formula be taken as a best guess, and not a guarantee of a future value?

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About This Quiz & Worksheet

Future value refers to how much something will be worth in the future, and there is a formula that can be used to help determine it. The quiz and worksheet combination will show you the formula and test you on the factors involved.

Quiz & Worksheet Goals

Students will answer questions related to:

  • The advantage of using the future value formula
  • Interest rates and their relationship to the future value formula
  • What the variables in the future value formula stand for

Skills Practiced

This worksheet and quiz let you practice the following skills:

  • Reading comprehension - ensure that you draw the most important information from the related accounting lesson
  • Knowledge application - use your knowledge to identify a true statement about calculating future value
  • Information recall - access the knowledge you've gained regarding the formula for future value and the factors that are involved in it

Additional Learning

The corresponding lesson, How to Calculate Future Value: Formula & Example, will:

  • Give an overview of calculating future value
  • Examine the formula and factors involved
  • Provide specific examples using the formula
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