Present value Present dollars into the future Define R=initial investment amount r=rate of return on investment T=years of investment The future value(F of the investment is T FV=R(1+r5 Present Value: Present Dollars into the Future • Define – R=initial investment amount – r=rate of return on investment – T=years of investment • The future value (FV) of the investment is: FV R( r) T = 1+