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Earn +20 ptsQ: What happens to the future value when the payment amount doubles?
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Continue Learning about Math & Arithmetic
What variables are required to calculate the present value of a future amount?
The future amount itself and a discount rate.
What Excel function calculates the future value an investment based periodic payments?
FV( interest_rate, number_payments, payment, PV, Type )
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 dividend signaling theory?
This refers to the idea that the price of a dividend (a corporate payment made by a corporation to its shareholders) signals positive future performance of the company.
How do you find future value of share if you have present of it?
F = Future value P = Present Value i = Intrest Rate n = no. of years Therefore, the formula for future value of present amount :- F= P (1+i)n
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