Future value is a financial concept that estimates how much an investment will grow over time, based on a specific interest rate. It helps individuals and businesses understand the potential worth of their money in the future, considering factors like inflation and interest rates. To calculate future value, you can use the formula: FV = PV (1 + r)^n, where FV is future value, PV is present value, r is the interest rate, and n is the number of periods. This calculation is essential for making informed investment decisions and planning for long-term financial goals.