If you manage your cash wisely in your small business, you may have enough to put in a savings account, certificate of deposit, or even a short-term investment. Do you know how much you will have in the future if make an investment? You use a financial calculation called future value of an investment to find out how much you will have in the future. You can hand calculate the future value of your investment using a formula, a financial calculator, or an Excel spreadsheet.
Calculating future value of an investment is only one time value of money calculation that you should learn as a business owner and financial manager.