$6\mathrm{.}3$ The future$-$value$-$of$-$money formula relates how much a current investment will be worth in the future, assuming a constant interest rate:

$FV=PV(1I{)}^n$

where

FV is the future value,

PV is the present value or investment,

I is the interest rate expressed as a fractional amount per compounding period$-$i$.$e$.,5\%$ is expressed as $\mathrm{.}05,$ and

$N$ is the number of compounding periods.