Purchase Solution

Present and Future Value Relationship

Not what you're looking for?

Ask Custom Question

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.

Purchase this Solution

Solution Summary

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.

Solution Preview

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.

Calculations ...

Purchase this Solution


Free BrainMass Quizzes
Operations Management

This quiz tests a student's knowledge about Operations Management

Understanding Management

This quiz will help you understand the dimensions of employee diversity as well as how to manage a culturally diverse workforce.

Motivation

This tests some key elements of major motivation theories.

Learning Lean

This quiz will help you understand the basic concepts of Lean.

SWOT

This quiz will test your understanding of the SWOT analysis, including terms, concepts, uses, advantages, and process.