How should future value (FV) be rounded according to financial principles?

Future value (FV) should be treated based on the context in which it is used, but financial principles typically advocate for rounding to a practical figure. When dealing with monetary values, rounding down is often preferred in instances where a conservative approach is necessary, such as ensuring that estimates do not overshoot actual expected income or expenses.

Rounding down can help in financial planning or reporting, leading to a more cautious estimate of funds available, thus avoiding potential pitfalls in budgeting and projections. This is particularly relevant when presenting financial information to stakeholders who may be conservative in their assumptions about what can realistically be achieved.

While other methods of rounding, such as rounding up or using the nearest integer, might have their place in different calculations, the practice of rounding down aligns more closely with the cautious nature of financial predictions.