Ending Market Value (EMV)
2020-08-10 15:07
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The value of an investment at the end of the investment period. Ending market value (EMV) is calculated by taking the beginning market value and adding the interest earned over the course of the investment.
Ending Market Value = Beginning Market Value x (1 + interest rate).
This is an important equation to consider when choosing an investment as the time value of money can be a valuable decision-making variable.
|||For example:
Beginning market value = 100
Interest rate = 10%
EMV = 100 x (1 + 0.10)
EMV = 110
