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terminal value

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Terminal Value
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Financial Dictionary

Terminal Value - TV

The value of an investment at the end of a period, taking into account a specified rate of interest.

Investopedia Commentary

The formula to calculate terminal is the same as that for compound interest:



Where:
TV = the total amount
P = the principal amount
r = interest rate
t = period of time

See also: Compounding

Also spelled: TV

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Terminal Value
Voted Barron's Best Online Broker 4 Years in a row!
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Terminal Values
Terminal Values Online. Shop Target.com.
www.Target.com
Financial Dictionary

terminal value

The dollar value of an asset at a specific future time. For example, a $1,000 certificate of deposit that earns an annual return of 9% has a terminal value of $1,539 in five years.

Wall Street Words: An A to Z Guide to Investment Terms by David L. Scott.
Copyright © 2003. Published by Houghton Mifflin.
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