Simply put, future value is the principal plus any interest or return gained from an investment over time. It denotes the value of an investment at a certain date in the future, expressed in terms of its equivalent value to a specified sum today, taking into account the effects of inflation, interest rates, or currency values. The concept is primarily used in time value of money calculations.
The basic formula of Future Value is
FV = PV*(1+r)^t
FV= Future Value
PV= Present Value
r= Rate of interest