ACCT500-DEVRY UNIVERSITY-Week 5: Time Value of Money Concepts
Question
| CODE | UNIVERSITY | WORDS COUNT | REFERENCE |
| ACCT500 | DEVRY UNIVERSITY | 600 | APA |
QUESTIONS:-
1- What is the difference between future value and present value?
2- What data do you need to do a future value or present value calculation?
3- What are various ways to calculate the time value of money in addition to using the future value and present value formulas?
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Answer ( 1 )
Future value is the amount we want to receive in the future after a certain period of time or at a certain quantity. The amount to which the growth in our current investments has increased the future value of an annuity. It is built on a compounding foundation. Present value refers to the current value of an income that will be received in the future. The amount we must invest today in order to achieve the desired amount in the future is known as present value. It is based on the concept of discounting.