What is meant by "Future Value" in financial terms?

"Future Value" in financial terms refers to the total value of an investment at the end of a specified term, taking into account factors such as interest rates and the effect of compounding. This concept is crucial for understanding how money grows over time when invested or saved. In calculating future value, one considers the principal amount, the interest rate, and the number of compounding periods.

For instance, if you invest money today, the future value will reflect what that investment will be worth at a future date, allowing you to assess how much you can expect to earn or accumulate. This is particularly important when evaluating savings plans, investments, or retirement funds.

The other options misrepresent the concept. The total invested amount, for example, pertains to the present value and not the future worth of an investment. Meanwhile, depreciation deals with the decrease in value of an asset over time, which does not relate to future value in finance. Lastly, while the gain on an investment at maturity might be related to future value, it does not encompass the overall worth of the investment at that point in time.