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If you have long term investments or a settlement that are giving you an income stream, but you are considering a trade for an immediate lump sum, you are concerned with the present value of your assets. Present value means simply, how much is an investment that pays off sometime in the future worth at this current moment in time?
Because of immediate or unexpected emergencies, or sometimes to simply take advantage of a current investment opportunity, many people consider trading annuity payments or a future payoff for an immediate lump sum payment, but do not know how to calculate the present value of their investment. If they are unaware of the true market value of their investment, they can easily be cheated out of value. Some institutions specialize in buying investments such as these from unsuspecting people, and immediately reselling them at full present value for an immediate riskless profit.
Before the prevalence of the internet, only financial experts had access to the tools necessary to perform anything more than a simple present value calculation. Sure, they teach the basics of present value in high school math, but investments in the real world are never that ideal. Fortunately, the internet has given to the average citizen the information that was once privy only to the financial elite in the form of a present value calculator.
All an investor need do is go to a present value calculator site, type in the future value of his or her investment, the amount of time meant for the payoff, and the interest rate at which the investment is paying. There are more complex calculations as well, but these are the basic parameters. The online calculator will then tell the investor what his or her investment is worth in the present day.
Though other factors may affect the value of your investment, the present value calculator can definitely be used as a bellweather before you go into a financial institution or individual to make a business deal to trade a future investment for a present day payoff. No longer are complex calculations locked away from you; make sure to use these resources to your advantage.
What else can I help you with?
How much is 30 grams of 14k gold worth?
Right now it is worth $1,000.
When was The Future's Right Now created?
The Future's Right Now was created in 1998.
What is the difference between present values and future values?
Present Value ------------------- You know what something WILL be worth in the future, and you want to find out what it should sell for today. Future Value ------------------- You know how much something is worth now, and you want to find out what it will be worth in the future.
How much are disney country bears worth?
The mcdonald toys right now (2012) aren't worth much on ebay.
How much will a penny from the 1950's be worth in the future?
Not too much more than they're worth now, unless the price of copper significantly increases.
How much is lebron James all-star card worth?
right now he is worth about $350mill and more
How much is a british pence worth in us?
.02 cents right now.
How much money is a purple-yellow scallop shell worth?
It is worth as much as a person thinks it is worth ....right now. Give it years and the money be rollin'
How much money does max b have?
right now he is worth $000
How much is Home Depot worth?
home depot is worth 210,000,000 dollars right now in its stock market share!
How much is a 10lb bar of gold worth?
Right now, approximately $152,424 US dollars.
How much is a 1984 Trans Am worth?
all depends on the condition but they are bottom dollar right now.
