| Period | Present Value | Interest Rate | Inflation Rate | Effective Rate | Future Value |
|---|---|---|---|---|---|
| [Period] | [Present Value] | [Interest Rate] | [Inflation Rate] | [Effective Rate] | [Future Value] |
Present Value is the value of asset today
Interest Rate % (per period) is the expected compunding interest rate applicable for that period
Number of Period is the number of time periods between today and a future
date.
e.g., to calculate future value after 3 years number of periods is 3 if the interest
rate is for a year. And the number of periods will be 36 if the interest rate is
for a month
Inflation Rate % (per period) is the applicable rate of inflation for the given period. Historically it has been around 3%. However this number can vary from time to time, region to region
Future Value is the value of present amount in future if the amount grows at given interest rate