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An amount of money to be received in the future is worth less today than the stated amount?
Wiki User
∙ 14y ago
Since we can reasonably expect that the process of inflation will continue, it follows that dollars in some future year will be worth less than the same number of dollars are worth today.
Wiki User
∙ 14y ago
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What is value of money?
The time value of money is based on the premise that an investor prefers to receive a payment of a fixed amount of money today, rather than an equal amount in the future, all else being equal. In particular, if one received the payment today, one can then earn interest on the money until that specified future date. All of the standard calculations are based on the most basic formula, the present value of a future sum, "discounted" to the present. For example, a sum of FV to be received in one year is discounted (at the appropriate rate of r) to give a sum of PV at present. Some standard calculations based on the time value of money are: : Present Value (PV) of an amount that will be received in the future. : Present Value of a Annuity (PVA) is the present value of a stream of (equally-sized) future payments, such as a mortgage. : Present Value of a Perpetuity is the value of a regular stream of payments that lasts "forever", or at least indefinitely. : Future Value (FV) of an amount invested (such as in a deposit account) now at a given rate of interest. : Future Value of an Annuity (FVA) is the future value of a stream of payments (annuity), assuming the payments are invested at a given rate of interest. The time value of money is based on the premise that an investor prefers to receive a payment of a fixed amount of money today, rather than an equal amount in the future, all else being equal. In particular, if one received the payment today, one can then earn interest on the money until that specified future date. All of the standard calculations are based on the most basic formula, the present value of a future sum, "discounted" to the present. For example, a sum of FV to be received in one year is discounted (at the appropriate rate of r) to give a sum of PV at present. Some standard calculations based on the time value of money are: : Present Value (PV) of an amount that will be received in the future. : Present Value of a Annuity (PVA) is the present value of a stream of (equally-sized) future payments, such as a mortgage. : Present Value of a Perpetuity is the value of a regular stream of payments that lasts "forever", or at least indefinitely. : Future Value (FV) of an amount invested (such as in a deposit account) now at a given rate of interest. : Future Value of an Annuity (FVA) is the future value of a stream of payments (annuity), assuming the payments are invested at a given rate of interest.
What is Commodity-backed money?
Commodity-backed money is just what it sounds like: it's a currency where every unit of money--dollars, say--is backed by a stated amount of a commodity held in reserve by the government.
What was the gold standard and which groups of Americans supported it?
The gold standard was a system of money where the government owned and kept an amount of gold that was represented by the paper money issued. Paper money was called gold certificates and originally you could present the paper money and be given the stated face amount of gold for it. People like libertarians and strict constitutionalists supported the system, but the US stopped using it.
The first place winner receives half of the prize money The second runner up receives one of what the winner won What was the total amount of prize money distributed if the winner received 6000dollars?
alaa2003_jo@yahoo.com
What is monetary amount?
amount of money
What is the future value of your money?
the amount of money you will have at a specified date in the future
How much money will you make in the future?
The amount of money that you will make in the future will depend on what you are currently doing. Your present investment or income generating activities will influence the amount of money to make in the future to a great extent.
Time is money is an example of what?
Time is money is an example of when in time money is received. The present value of money can be different from its' future value; Interest, inflation, investments and if money will even be there in the future affects the future value of the sum. Also, opportunity cost, or the benefits given up to pursue a different option, can affect how much money is made and tells that person how his or her time can be better spent to earn the most amount of money in a certain amount of time, or how much money is lost when deciding to spend that same amount of time doing something else.
Under what conditions must a distinction be made between money to be received today and money to be received in the future?
When idle money can earn a positive return.
What is value of money?
The time value of money is based on the premise that an investor prefers to receive a payment of a fixed amount of money today, rather than an equal amount in the future, all else being equal. In particular, if one received the payment today, one can then earn interest on the money until that specified future date. All of the standard calculations are based on the most basic formula, the present value of a future sum, "discounted" to the present. For example, a sum of FV to be received in one year is discounted (at the appropriate rate of r) to give a sum of PV at present. Some standard calculations based on the time value of money are: : Present Value (PV) of an amount that will be received in the future. : Present Value of a Annuity (PVA) is the present value of a stream of (equally-sized) future payments, such as a mortgage. : Present Value of a Perpetuity is the value of a regular stream of payments that lasts "forever", or at least indefinitely. : Future Value (FV) of an amount invested (such as in a deposit account) now at a given rate of interest. : Future Value of an Annuity (FVA) is the future value of a stream of payments (annuity), assuming the payments are invested at a given rate of interest. The time value of money is based on the premise that an investor prefers to receive a payment of a fixed amount of money today, rather than an equal amount in the future, all else being equal. In particular, if one received the payment today, one can then earn interest on the money until that specified future date. All of the standard calculations are based on the most basic formula, the present value of a future sum, "discounted" to the present. For example, a sum of FV to be received in one year is discounted (at the appropriate rate of r) to give a sum of PV at present. Some standard calculations based on the time value of money are: : Present Value (PV) of an amount that will be received in the future. : Present Value of a Annuity (PVA) is the present value of a stream of (equally-sized) future payments, such as a mortgage. : Present Value of a Perpetuity is the value of a regular stream of payments that lasts "forever", or at least indefinitely. : Future Value (FV) of an amount invested (such as in a deposit account) now at a given rate of interest. : Future Value of an Annuity (FVA) is the future value of a stream of payments (annuity), assuming the payments are invested at a given rate of interest.
What are money held and assets to be received in fixed or determinable amount of money?
monetary assets
The difference between the amount of money received from selling an investmentand the amount of money spent to purchase the investment is known as?
If what you spent on the investment was less then what you received when you sold it, it is called your "profit". If what you spent on the investment was more then what you received when you sold it, it is called your "loss".
What s loan?
A Loan is to borrow something as in money and in the future you give the amount of money that you borrowed to the person that you borrowed the money from.
What was the biggest amount of money received in the Iditarod race?
I think it was $500,000
A wage is normally stated as a fixed amount of money paid each year to an employee?
A wage is normally stated as a fixed amount of money paid each year to an employee True, but wage can also be expressed in an hourly wage or monthly wage or weekly wage....
What artist received the most money?
Pablo Picasso has made the most amount of money for his art work.
How can you use beneficiary in a sentence?
The beneficiary received a huge amount of money from lottery.
