Editing Future value (section)

==Simple interest==
To determine future value (FV) using [[simple interest]] (i.e., without compounding):

:<math>FV = PV(1+rt)</math>

where ''PV'' is the [[present value]] or principal, ''t'' is the time in years (or a fraction of year), and ''r'' stands for the per annum [[interest]] rate. [[Simple interest]] is rarely used, as compounding is considered more meaningful {{Citation needed|date=January 2010}}. Indeed, the Future Value in this case grows linearly (it's a [[linear function]] of the initial investment): it doesn't take into account the fact that the interest earned might be compounded itself and produce further interest (which corresponds to an [[exponential growth]] of the initial investment -see below-).
{{Expand section|date=January 2010}}