terminal value (TV) The value of an investment at the end of an investment period taking into account a specified rate of interest over the period. The formula is the same as that for compound
interest, i.e.
TV =
P(1+r)t, where
TV = the final amount at the end of period,
P = the principal amount invested,
r = the interest rate, and
t = the time in years for which the investment takes place.
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