We estimate the future value of your money based on the expected yearly return of your investment plan and the timespan during which you could see yourself investing your money.
Let’s say you have an investment plan with an expected return of 5% per year and are planning to invest €100 for 3 years.
Year 1: You invest €100 and make €5 return (5% of €100). That results in €105.
Year 2: Your €105 make €5,25 return (5% of €105). That results in €110,25.
Year 3: Your €110,25 make €5,51 return (5% of €110,25). That results in the final expected sum of €115,76.