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    Relationship between future value and present value

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    1. How is the future value (Appendix A) related to the present value of a single sum (Appendix B)?

    2. 2. How is the present value of a single sum (Appendix A) related to the present value of an annuity (Appendix D)?

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    https://brainmass.com/business/annuity/relationship-between-future-value-present-value-47597

    Solution Preview

    1. The present value is the reciprocal of the future value. For example, if you take the Future Value of say year 3 and 10%, it is 1.331. The Present value under 10% and 3 years is 0.751 and the reciprocal of future value is 1/1.331=0.751. The ...

    Solution Summary

    The solution explains the relationship between future value and present value of a single sum and an annuity

    $2.19

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