Present and Future Value Calculations
Not what you're looking for?
When would we use present value calculations?
When would we use future value calculations?
Which is more likely to be used in accounting and why?
Purchase this Solution
Solution Summary
Almost 400 words on how to find present and future value and which is more commonly used in accounting.
Solution Preview
Present value is the future value being discounted by an appropriated capitalization rate. The value of sum of money received today is more than its value received after some time.
Present value
Present worth of rupee received after some time will be less than the rupee received today. This is because of time value of money. The investor has time preference of money because he has reinvestment opportunities for funds, which are received early.It is used to calculate the present value of amount or annuity.
The present value of a future cash flow is the nominal amount of money to change hands at some future ...
Purchase this Solution
Free BrainMass Quizzes
Organizational Behavior (OB)
The organizational behavior (OB) quiz will help you better understand organizational behavior through the lens of managers including workforce diversity.
Team Development Strategies
This quiz will assess your knowledge of team-building processes, learning styles, and leadership methods. Team development is essential to creating and maintaining high performing teams.
Operations Management
This quiz tests a student's knowledge about Operations Management
Employee Orientation
Test your knowledge of employee orientation with this fun and informative quiz. This quiz is meant for beginner and advanced students as well as professionals already working in the HR field.
Understanding the Accounting Equation
These 10 questions help a new student of accounting to understand the basic premise of accounting and how it is applied to the business world.