The time value of money formula is:

FV = PV x [ 1 + (i / n) ] (n x t)

  • FV = Future value of money
  • PV = Present value of money
  • i = interest rate
  • n = number of compounding periods per year
  • t = number of years

One of the biggest filters to calculate the destruction of the value of money into the future is the current rate of inflation on a currency.

time value of money
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