Question

What is the difference between future value and present value? What data do you need to do a future value or present value calculation?

Answer #1

Future value: Today Dollar value in future at a certain point of time.

Present value: Future dollar value of today’s dollar expected to be received in future at a certain point of time.

Future value = P×(1+r)^n

P is present value

r is interest rate per period

n is number of periods

**P, r and n are required for calculating future
value.**

Present value = P×(1÷(1+r)^n)

P is Future value

r is interest rate per period

n is number of periods

**P, r and n are required for calculating future
value.**

Explain what Present Value and Future Value are in you own
words. What is the difference between the Present Value of $ and
the Present Value of an Annuity? What is a perpetuity?

What data do you need to predict future store sales?

1. Explain the difference between present value(PV) and future
value(FV) and how these two concepts are applied in the financial
world.
2.explain the meaning of time value of money in regard to
finance.

Class, as it relates to business and investment decisions, what
is the difference between the present value and future value of
money? And what is the meaning of a discounted rate?

If the difference between the future amount after 6 periods and
the present amount was 600 and the future amount was 2600, what is
the simple interest rate per period stated as percentage?

Which of the following describes the relationship
between present value and future value?
The higher the interest rate, the higher the present value and
the lower the future value.
When one increases, the other increases, assuming all variables
are constant.
When present value increases, the future value decreases,
assuming all variables are constant.
The more time that passes, the higher the present value and the
lower the future value.

In this part, you need to examine the relation between the
future value and the number of periods.
For a present value of $5,000, create a table that shows the FV
at 0%, 5%, and 10% for 0, 2, 4, 6, 8, and 10 years.
In a single graph (scatter plot with straight lines and
markers), graph the table above with years on the horizontal axis
and FV on the vertical axis for each interest rate and be sure to...

Explain why the interest earned on a deposit is equal to the
difference between the future value and the present value. In your
response be sure to clearly define future and present value

Please provide a real-life example of what you learned. It can
be a present value, future value, number of periods, interest rate
(growth rate), or payment problem. You need to state the problem
and then solve the problem. The problem has to come from our daily
life as a student

Please provide a real-life example of what you learned. It can
be a present value, future value, number of periods, interest rate
(growth rate), or payment problem. You need to state the problem
and then solve the problem. The problem has to come from our daily
life as a student

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