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The answer depends on the term (length of ime) and the interest rate or inflation rate expected over the period.
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∙ 10y ago
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Which one of the following discount frequencies will yield the largest present value give a stated future value and annual percentage rate.?
daily
What is the present value of an investment if its future value is 10000 for 6 years?
$7,903.50 if the intrest rate is 4% (A high bank intrest rate percentage)
What is present value analysis?
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.
How do insurers determine appropriate premiums for policy holders?
insurers set premiums based on the equivalence principle where they set the present value of future outgo to the present value of future benefits. the calculations allow for an implicit profit due to interest spreads.
Is the present value factor the exponent of the future value factor?
The present value factor is the exponent of the future value factor. this is the relationship between Present Value and Future Value.
How is the future value related to the present value of a single sum?
The present value is the reciprocal of the future value.
If you want to find the present value of an investment you should choose the financial function?
You can use the PV function or the NPV function. Present Value is the result of discounting future amounts to the present. Net Present Value is the present value of the cash inflows minus the present value of the cash outflows.
What is the meaning of present value?
Present Value means the current value of future cash flows discounted at the appropriate discount rate. Say I gave you a document promising to give the bearer $100,000 on a particular date. If the date was tomorrow, you could sell the document today for close to $100,000. If the date was 100 years from now, the document is close to worthless. On the settlement date, it's worth $100,000. The "present value" is the value right now of a promise to pay in the future. Usually you calculate the present value based on the period of time and an interest rate, also known as the discount rate.
Present Value Calculator?
Present Value Calculator Use this calculator to determine the present value of a stream of deposits plus a known final future value.
What is the loss percentage?
It is the percentage decrease of an item from its original value. It is worked out as: (original value-loss)/original value times 100 = percentage loss.
What is method of percentage?
for finding out the percentage (%) you should have total value, obtained value, then you have to divide obtained by total value and multiplying the result with 100. Through this, you can get the percentage :)
What is the percentage of 33.60?
The percentage of 33.60 is 3360%. You determine the percentage of that value by multiplying the value by 100 and placing % next to the product.
