Future value of a single cash flow (sub-annual compounding of interest) formula

Tags: placements time value of money

Description of the Future value of a single cash flow (sub-annual compounding of interest) formula

Formula allowing to calculate the future value of a single cash flow after N years, with m compounding periods per year.

F V_{C^{N}} = C {(1 + \frac{i}{m})}^{m \cdot N}

C

Start capital

i

Annual interest rate

m

Number of discount periods per year

N

Number of years