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The concept of value and return : 

The concept of value and return The concept of time value of money deals with the fact that an amount of money received in the future is not as valuable as the same amount of money received in the present. This is because- (i) The future is uncertain (ii) Individual prefer current to future consumption (iii) The opportunity exists to invest the amount received in the present at a specific rate of interest (iv) Inflationary trends are a common feature reducing the value of money in the future

Slide 3: 

all this mean that future benefits should include some compensation for waiting . It can also said that the future value is the sum of the presented value compounded at a given rate of intrest.

Computation of future value : 

Computation of future value Future value of a single amount The future value of Rs 5000,10 years from now at 8% rate.