Answer It doesn't know anything! Try a different website!
The PV function returns the present value of an investment, which is the total amount that a series of future payments is worth presently.
The FV function calculates the future value of an investment.
You should do your research prior to investing to find out the historical rate of return on your prospective investment. However, past returns are no indication of future returns.
The PV function is a financial function. It is used to return the present value of an investment based on an interest rate and a constant payment schedule. The syntax is a follows: PV( rate, number_payments, payment, [FV], [Type] ) Rate is the interest rate for the investment. Number_payments is the number of payments for the annuity. Payment is the amount of the payment made each period. If it is omitted, you have to enter a FV value. FV is optional. It is the future value of the payments. If it is omitted, it is assumed to be 0. Type is optional. It indicates when the payments are due. Type can be one of the following values: 0 for when payments are due at the end of the period, which is the default. 1 for when payments are due at the start of the period. If the Type parameter is left out, the PV function sets the Type value to 0.
No, the future value of an investment does not increase as the number of years of compounding at a positive rate of interest declines. The future value is directly proportional to the number of compounding periods, so as the number of years of compounding decreases, the future value of the investment will also decrease.
Future Value
This is true because the main concept of investment, especially the quantitative branch of investment, is to predict future returns based upon historical data.
1. What if firms expected future returns to be very high?
Future Value Calculator Use this calculator to determine the future value of an investment which can include an initial deposit and a stream of periodic deposits.
Increases
It is a financial function. It returns the future value of an investment based on an interest rate and a constant payment schedule. So if you are paying in a set amount on a regular basis, like every month, and there is a fixed interest rate, it can work out how much your investment will be worth. See the link below for more details.
Return on investment (ROI) is a financial metric used to evaluate the profitability of an investment relative to its cost. It is calculated by dividing the net profit from the investment by the initial cost of the investment, usually expressed as a percentage. A higher ROI indicates a more profitable investment.