Discounting Future Value
Posted by Professor Cram in Time Value of Money
Discounting Future Value
Discounting the future value is the process of figuring out what that future value is in present-day money. Use this tutorial to learn how to calculate the discounted future value given the future value, periodic interest rate, and number of periods.
Future Value and Compounding
Future value is a result of the compounding of interest earned on the present value, or starting amount. As time progresses, the periodic interest is added to the starting amount and the next periodic interest amount is calculated based on that.
As such, the amount of interest earned over the entire time period can be found by subtracting the present value from the future value:
Amount of Interest = FV – PV
Click this link to learn more about compound interest and other Time Value of Money concepts.
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Great information hope it will assist me on my exam it seems erroneous to me that non traditional students that want to teach history and consul at 53 i sail through most of my classes but I’m from an era that didn’t test for ADHD and so math and memories of the fun my dad got in humiliating his children as something he didn’t go well, fill my mind when anyone mentions Math. This exam is over Simple and Compound Interest.