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Present vs. Future Value in a Retirement Plan

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What is the difference between present and future values? How would you use present and future value techniques in preparing a financial retirement plan? How would various required rates of return affect the decision? Explain your answer.

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The present versus future value in a retirement plan is determined. The various required rates of return affect the decision is determined.

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PRESENT AND FUTURE VALUES
What is the difference between present and future values? How would you use present and future value techniques in preparing a financial retirement plan? How would various required rates of return affect the decision? Explain your answer.
Present value is the current worth of a future sum of money that is expected to be received. It is the amount of money, which takes into consideration the fact that money does not have the same value over two or more periods.

Future value, on the other hand, is the future worth of money if it is invested at a given rate. It ...

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