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What variables are required to calculate the present value of a future amount?
The future amount itself and a discount rate.
Calculate the future value of 150 if invested for three years at a 9 percent interest rate?
Value = 150*(1.09)3 = 150*1.295 = 194.25
Why present values are dependent upon interest rates?
Interest rates are also known as discount rates because in order to calculate the present value of a future amount, the future amount must be discounted back to the present
What is future value of 1 calculated at 8 percent in 18 periods?
It depends on the period. -- If the period is 1 year, the future value is 3.996 . -- If the period is 6 months, the future value is 2.026 . -- If the period is 3 months, the future value is 1.428 . -- If the period is 2 months, the future value is 1.269 . -- If the period is 1 month, the future value is 1.196 . These are compounded values. If interest is simple, then the value after 18 years is 2.44 .
What happens to the future value when the payment amount doubles?
Well first off, you need to tell what the payment is, because we won't know what will HAPPEN to the future value so if you want your answers now, please answer back to get YOUR answer for what important thing you need to know. Thanks.
What variables are required to calculate the present value of a future amount?
The future amount itself and a discount rate.
What function is used to calculate the future of value on an investment?
PV is used for present values and FV is used for future values.
Why is the Time Value of money concept important to a business?
Time value of money is very important to any business especially business have more than one investment schemes. Time value of money means $100 received or earned today worth more than couple of years after. Therefore, business need to calculate time value of future cash (i.e. present value of future earning expectation) to choose best option.
What function would be used to calculate the future value of an investment?
The FV() function.
Do future value calculators account for inflation?
No. Future Value Calculators use a set amount, payment and interest fee to calculate. If you need to apply the inflation factor, you will need to use an Inflation Calculator.
Impact of future value in financial decision?
The future value of money is important in a business decision because you don't want to get less than the future value. You also want to make sure you make money if you will not have access to your money.
When you calculate your profit it is especially important for you to include the value of your time?
Labor Hours
What is a present value calculator?
A present value calculator is a calculator that is used to figure out the future value of something based on constant payments and interest rates. It helps to calculate the present value as well.
Calculate the future value of 150 if invested for three years at a 9 percent interest rate?
Value = 150*(1.09)3 = 150*1.295 = 194.25
Calculate use it in a past present and future?
Past tense - calculated. Present tense - I/you/we/they calculate. He/she/it calculates. Future tense - will calculate.
How do you compute present and future value of a cash flow stream?
Future Value = Value (1 + t)^n Present Value = Future Value / (1+t)^-n
Calculate the PV of the single cash flow?
Present value of single cash flow is as follows: PV = FV (1 + i)^n Where PV = Present value FV = Future value i = Interest n = time
