Future value

An amount of money in our hands today, for example 10,000 NIS, will grow to a larger amount in the future.

The amount it will reach in a year is called: the future value in a year of 10,000 NIS today.

The amount it will reach in 5 years is called: the future value in 5 years of 10,000 NIS today.

Example 1

Today we received 10,000 NIS, which we deposited in the bank for 5 years, at an annual interest rate of 10%.
At the end of 5 years, the amount will grow to 16,100 NIS.
16,100 NIS is the future value in 5 years of 10,000 NIS today.

Example 2

We are supposed to receive 1,000 NIS a year from now, which will be deposited immediately in the bank for 4 years at an annual interest rate of 10%.
In this example, 5 years from now, we will have accumulated 1,464 NIS.
1,464 NIS is the future value in 5 years (from today) of 1,000 that we will receive in a year.