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No equity is value over what's owed. A deposit has nothing to do with what it's worth.
Present value is the result of discounting future amounts to the present. For example, a cash amount of $10,000 received at the end of 5 years will have a present value of $6,210 if the future amount is discounted at 10% compounded annually.Net present value is the present value of the cash inflows minus the present value of the cash outflows. For example, let's assume that an investment of $5,000 today will result in one cash receipt of $10,000 at the end of 5 years. If the investor requires a 10% annual return compounded annually, the net present value of the investment is $1,210. This is the result of the present value of the cash inflow $6,210 (from above) minus the present value of the $5,000 cash outflow. (Since the $5,000 cash outflow occurred at the present time, its present value is $5,000.)
Money market hedge is defined as borrowing and lending money in multiple foreign currencies to lock in that currency's value. This can be done by selling commercial paper, or by purchasing certificates of deposit for a short term.
Yes. An Asset is something that has a value and can be sold/converted to cash.
Adding the interest to the original deposit accelerates the deposited value.
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.
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loan with lower present value means higher tenure of repayment & because of this higher tenure its present value factor increases and its present value gets reduced. on the other hand loan with lower periodic installments means again you are making repayments over longer period of time. so as far as my knowledge is concerned, both are same
The principal which, drawing interest at a given rate, will amount to the given sum at the date on which this is to be paid; thus, interest being at 6%, the present value of $106 due one year hence is $100.
Present Value (PV)Future Value (FV) Number of periods (n) Interest Rate (i) Payment Amount (PMT)
All things being equal, a loan with lower present value is preferred to a loan with lower periodic installment. Simply because you are paying a lower interest. A present value of a loan is determined by 1) amount of loan 2) interest rate 3) number of payment frequency such as monthly, weekly, and etc 4) the size of each periodic payment 5) time of the loan So if 1,3, and 5 remain the same and only 2 and 4 can change, then the relationship is of 2 and 4 is positively correlated. That is the higher the interest rate the higher the size of periodic payment.
my Question is which has greater value? $52.565 cash plus $33.455 interest deposit or $33.999 cash plus $44925 interest deposit
The present value factor is the exponent of the future value factor. this is the relationship between Present Value and Future Value.
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Physics The maximum absolute value of a periodically varying quantity. Mathematicsa: The maximum absolute value of a periodic curve measured along its vertical axis.b: The angle made with the positive horizontal axis by the vector representation of a complex number.
The present value is the reciprocal of the future value.
No equity is value over what's owed. A deposit has nothing to do with what it's worth.