framtíðarreikninga

Framtíðarreikningar refer to calculations used to estimate or compare financial outcomes at a point in the future. They are based on the time value of money, which holds that a sum of money today is worth more than the same sum in the future due to its potential earning capacity. In practice, framtíðarreikningar are used to translate present values into future values or vice versa, often through the application of a growth or discount rate.

A central idea in framtíðarreikningar is the relationship between present value and future value. The future value of a present amount is generally calculated as present value multiplied by (1 + r)^t, where r is the rate of return or interest and t is the number of periods. Conversely, the present value of a future amount is future value divided by (1 + r)^t. These calculations underpin key concepts such as núvirði (present value) and framtíðarverðmæti (future value), and they are fundamental in evaluating investments, loans, and financial plans.

Applications of framtíðarreikningar span personal finance, corporate budgeting, and actuarial science. They are used in retirement planning, mortgage and loan amortization, bond pricing, and capital budgeting to assess the profitability and risk of projects over time. Limitations include dependence on uncertain assumptions about rates, inflation, and time horizons, which can affect accuracy.

See also: time value of money, present value, future value, net present value, internal rate of return.