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The present value factor is the exponent of the future value factor. this is the relationship between Present Value and Future Value.
The present value is the reciprocal of the future value.
Future Value = Value (1 + t)^n Present Value = Future Value / (1+t)^-n
I need a answer how do you know when to use future value or present value and future value of a annuity and present value of annuity Please help
What effect do interest rates have on the calculation of future and present value, how does the length of time affect future and present value, how do these two factors correlate.
F = Future value P = Present Value i = Intrest Rate n = no. of years Therefore, the formula for future value of present amount :- F= P (1+i)n
the current dollar value of a future amount
Present value analysis is a financial technique used to evaluate the value of future cash flows by discounting them back to their current value. It takes into account the time value of money, allowing for better decision-making by comparing the present value of costs and benefits. The goal is to determine whether an investment or project is worth pursuing based on its potential return.
The Present Value Interest Factor PVIF is used to find the present value of future payments, by discounting them at some specific rate. It decreases the amount. It is always less than oneBut, the Future Value Interest Factor FVIF is used to find the future value of present amounts. It increases the present amount. It is always greater than one.
Present Value Calculator Use this calculator to determine the present value of a stream of deposits plus a known final future value.
The present value of future cash flows is inversely related to the interest rate.
The present value is what it is worth today minus any surrender charges. The future value is what it will be worth in the future at a given interest rate and again minus any surrender charges if applicable.