What happens if the return is received more than one year into the future? The same logic of adjusting for interest that could have been earned still applies, but the computations look messier because the interest earned would compound. In other words, interest earned during the first year would earn interest in the second year, and so on through the years. The general formula for compounding, 〖FV〗_n = PV(〖1+r)〗^n, can be rearranged in the same way that the single year compounding formula was to produce the general present-value formula