All the financial calculations in finance are based upon compounding rates. In addition, Time Value of Money has applications in many areas of finance including capital Budgeting, bond valuation, and stock valuation. Future Value describes the process of finding what an investment today will grow to in the future. This is called compounding.
Even though most financial calculations can be accomplished using basic math and elementary algebra it is recommended you use a good calculator, app, or an excel spreadsheet. Here are a few methods to calculate time value of money problems. In addition, there will be tutorials to use each.