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What is the relationship between present and future value?
The relationship is that present value is the current value of future cash flows discounted at the appropriate discount rate. Future values are the amount a present value investment is worth after one or more periods. We learn everything we can in the present so we have some of the answers for the future and what we don't know we ask the pros about. The difference between the two is contributed by time. The value of something (an asset) may typically increase over a period of time. $100 that you give me today is not the same as $100 you give a year later. There is an interest (or return) that accrues when you pay me $100 a year later. The future value after n years of an amount P where R is the rate of interest (in percentage) is calculated as P(1+R/100)**n : using compound interest. If R =50 (that is 50% rate of return, I know it is high) and n = 2 years, the future value of P is P*1.5*1.5=2.25P where is today's value. The Present value can be calculated from the future value as P = F/( (1+R/100)**n ) It is necessary to measure the value of an amount that is allowed to grow at a given interest over a period. This is how the future value is determined.
What is the value of 10000 with a 5 percent interest over 30 years?
see this similar question, problem is done the same way.What_is_the_value_of_10000_with_a_3_percent_interest_over_30_years
What is the interest on R528 at 7 percent simple interest over 2 years?
7% simple annual interest over 2 years = 14% total interest.14% of R528 = R73.92 .
What is the compound interest of 4000 at 4 percent over 30 years?
The interest will be 8973.59 approx.
What is the value of 10000 with a 3 percent interest over 30 years?
Compounding of simple interest can be used by the following formula:P = P0 * (i+1)nwhere i is the ineterest rate; n the number of years; P0 initial principleP = 10,000 * (0.03+1)30= 10,000*(2.427262)= $24,272.62
Is the issue price of bonds equal to the present value of the principal plus the present value of the interest?
The price of bonds are not equal to the present value and principal upon purchase. The interest is accrued over a certain time period, then collected.
What is the future value in 3 years of the present value of 102.40?
The answer depends on your assumption about interest rates over the period. Without that information it is ot possible to give a more useful answer.
A loan at 6 percent interest over 5 years What is the total output?
If the interest is simple interest, then the value at the end of 5 years is 1.3 times the initial investment. If the interest is compounded annually, then the value at the end of 5 years is 1.3382 times the initial investment. If the interest is compounded monthly, then the value at the end of 5 years is 1.3489 times the initial investment.
What is appropriate percentage for present value?
The answer depends on the term (length of ime) and the interest rate or inflation rate expected over the period.
What is the relationship between present and future value?
The relationship is that present value is the current value of future cash flows discounted at the appropriate discount rate. Future values are the amount a present value investment is worth after one or more periods. We learn everything we can in the present so we have some of the answers for the future and what we don't know we ask the pros about. The difference between the two is contributed by time. The value of something (an asset) may typically increase over a period of time. $100 that you give me today is not the same as $100 you give a year later. There is an interest (or return) that accrues when you pay me $100 a year later. The future value after n years of an amount P where R is the rate of interest (in percentage) is calculated as P(1+R/100)**n : using compound interest. If R =50 (that is 50% rate of return, I know it is high) and n = 2 years, the future value of P is P*1.5*1.5=2.25P where is today's value. The Present value can be calculated from the future value as P = F/( (1+R/100)**n ) It is necessary to measure the value of an amount that is allowed to grow at a given interest over a period. This is how the future value is determined.
What would the present value factor be for sixteen point six five percent over ten years?
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What is the value of 10000 with a 5 percent interest over 30 years?
see this similar question, problem is done the same way.What_is_the_value_of_10000_with_a_3_percent_interest_over_30_years
How do you calculate sinking fund depreciation?
To calculate the annual amounts of sinking fund depreciation, you need to know the income-producing life of the machine, as well as the total amount of income (estimated to be) produced by the machine over that period. The actual economic depreciation in the income-producing value over one year is that value which would be necessary for one to put aside in a bank account, compounding interest, in order for the income to be replaced in the first year in which the machine no longer produces income (and subsequent years). If a machine will produce income for five years at a rate of $1000 per year, the income in the sixth year out (and subsequent years) will need to be replaced with interest generated on a theoretical present value deposited in an interest bearing account today. Assuming that the applicable Fed interest rate is 10%, you discount the $1000 sixth year payment to year one by that rate, and this principal (or present value) amount can be considered the sinking fund depreciation for that year. In years two through five, the depreciation will be calculated as this original present value increases with interest compounding. The principal, which is considered the depreciation, increases with each year due to the fact with each passing year, more money must be invested in order re replace lost sixth year income. In addition, the original present value used above is added to the increasing present value, to account for lost income needing to be replaced in years seven and onward. These calculations take place alongside other normal depreciation deductions on the value of the machine asset itself, and theoretically, income tax deductions should be allowed on the sinking fund depreciation as well as the ACRS schedule for the value of the machine.
What is the interest on R528 at 7 percent simple interest over 2 years?
7% simple annual interest over 2 years = 14% total interest.14% of R528 = R73.92 .
What is 6 years at 30 percent?
After 6 years at a 30 percent interest rate, the total amount accumulated would be 1.30 times the original amount. This increase accounts for both the original value and the interest earned over the 6 years.
What is the present value in excel?
Present value is a financial term and is the result of discounting future amounts to the present. For example, a cash amount of $10,000 received at the end of 5 years will have a present value of $6,209.21 if the future amount is discounted at 10% compounded annually. Excel provides a function called PV for calculating the Present Value. For the example given, it would be as follows: =PV(10%,5,0,-10000) That is 10% over 5 years, with no payments at the end of year with value owed being 10,000.
Why have fashions changed over the years?
Because people's interest has changed over the years.
