Please explain and support your reactions to the following questions:
•What is the relationship between Present Value and Future Value?
•What are the calculations involved with PV and FV?
•How can you apply these concepts to a personal or business situation you are familiar with - please explain and support with terms and concepts?
Please Cite and List all references used.© BrainMass Inc. brainmass.com October 10, 2019, 7:52 am ad1c9bdddf
The future value gives the value that a particular sum of money has in future, considering certain interest rate or rate of return. On the other hand present value is the value on a given date of payment. PV and FV have an inverse relationship, i.e. when increases other decreases and vice versa. PV can be found from FV by discounting.
The solution provides an overview of present value and future value. The calculations involved with PV and FV are provided. How the expert applies these concepts to a personal or business situation is determined. References are provided to aid in the understanding of present and future values.